CONSOLIDATED FINANCIAL STATEMENTS AFTER ACQUISITION
LEARNING OBJECTIVES
Describe the accounting treatment required under current GAAP for varying levels of influence or control by investors.
Prepare journal entries on the parent's books to account for an investment using the cost method, the partial equity method, and the complete equity method.
Understand the use of the workpaper in preparing consolidated financial statements.
Prepare a schedule for the computation and allocation of the difference between implied and book values.
Prepare the workpaper eliminating entries for the year of acquisition (and subsequent years) for the cost and equity methods.
Describe two alternative methods to account for interim acquisitions of subsidiary stock at the end of the first year.
Explain how ...
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