Long-Term Investments and Consolidated Statements

This chapter examines what is perhaps the most interesting, and for many the most difficult, element of accounting; the long-term intercorporate investments made by one firm in another for strategic, long-term purposes, and in particular, consolidations. It will explain what the accounting terms “goodwill” and “noncontrolling interest” (also called “minority interest”) actually mean and how they are computed. Consolidation is an advanced accounting topic. It is often covered in the third course offered to those going into the accounting profession and may encompass more than half the course. The presentation here is a simplified version of what is actually done.

Long-Term Intercorporate ...

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