When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares

Question:

When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares of another company?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

See More Books

Question Posted: May 23, 2014 11:30 AM

See More Questions

When is equity-method reporting considered inappropriate even though sufficient common shares are owned to allow the exercise of significant influence?
Kruse Corporation holds 60 percent of the voting common shares of Gary's Ice Cream Parlors.On January 1, 20X6, Gary's purchased $50,000 par value, 10 percent first mortgage bonds of Kruse from Cane...
Parent Company holds 90 percent of Sunway Company's voting common shares. On December 31, 20X8, Parent recorded a loss of $16,000 on the sale of equipment to Sunway. At the time of the sale, the...
What are some examples of artificial selection? How are artificial selection and natural selection similar? How are they different?
McNaughton, Ruess, and Seagle (1988) proposed that grazing by large mammals increases the rate of nitrogen cycling on the savannas of East Africa. Explain how passing through a large mammal could...
Which method do you use to execute code only once after a specific amount of time has elapsed? a. setTimeout() b. setInterval() c. clearTimeout() d. clearInterval()
1 To what extent can the failure of the new bonus scheme be attributed to inadequate cross-cultural communication?
Slacks.com received a bank statement from Cobb Bank indicating a bank balance of $7,700. Based on Slacks.coms check stubs, the ending checkbook balance was $8,136. Your task is to prepare a bank...
Name 4 organisation that has ethical issues to green computing that affected their operations and stakeholders?
Let T be a (possibly improper) binary tree with n nodes, and let D be the sum of the depths of all the external nodes of T. Describe a configuration for T such that D is Î©(n 2 ). Such a...
What major criteria must be met before a company is consolidated?
What types of entities are referred to as special-purpose entities, and how have they generally been used?
Define the following terms related to reciprocating engines: stroke, bore, top dead center, and clearance volume.
Conservation efforts include reintroduction of species into the wild from captive breeding programs. Leung et al. (2018) rewilded mice from the inbred laboratory strain of mouse, C57BL/6, that had...
The ending balance of the Accounts Receivable account was $\$ 7,800$. Services billed to customers for the period were $\$ 21,500$, and collections on account from customers were $\$ 23,600$....
Cash Flow Activity Classification Classify each activity as financing, investing, or operating: 1. Repay a loan from a bank. 2. Sell merchandise from a storefront operation. 3. Dispose of an old...
Generally Accepted Accounting Principles Select the best answer to each of the following MBC) questions: 1. Accounting rules are developed to provide: a. Simplicity b. Useful information c....
Basic Accounting Principles Identify whether the following statements are true or false. 1. Together the revenue recognition principle and the expense recognition (matching) principle define the...
Diversifying Consider the characteristics of the following three stocks: The correlation between Thumb Devices and Air Comfort is -0.12. The correlation between Thumb Devices and Sport Garb is -0.21....
a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...
The income statements for Campbells Camping Ltd for the year ended 31 December for 2 years are shown below. The following information has been discovered concerning 2019. 1. On 23 December, Campbells...
Garwood Corporation acquired 75 percent of Zorn Company's voting common stock on January 1, 20X4. At the time of acquisition, Zorn reported buildings and equipment at book value of $240,000; however,...
Garwood Corporation acquired 75 percent of Zorn Company's voting common stock on January 1, 20X4. At the time of acquisition, Zorn reported buildings and equipment at book value of $240,000; however,...
Placer Corporation acquired 80 percent of Billings Company's voting common stock on January 1, 20X4. Placer and Billings reported total revenue of $410,000 and $200,000 and total expenses of $320,000...
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...

When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares

Question:

Step by Step Answer:

Consolidation is not appropriate when control is temporary o...View the full answer

Advanced Financial Accounting

Students also viewed these Accounting questions