The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement
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¢ On December 31, Year 1, Parent owned 100% of Sub. On this date, the share holders equity of Sub amounted to $1,120,000, and the parents unamortized acquisition differential of $565,000 was allocated entirely to the goodwill of Sub.
¢ On January 1, Year 2, Parent sold 30% of its shares of Sub for $629,000 cash and recorded an increase to retained earnings of $123,500 on the transaction. Parent uses the equity method to account for its investment.
¢ Parent paid $104,000 in dividends during Year 2.
Required:
Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of IAS 7.
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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