images

INTERCOMPANY BOND HOLDINGS AND MISCELLANEOUS TOPICS—CONSOLIDATED FINANCIAL STATEMENTS

LEARNING OBJECTIVES

images Describe the term “constructive retirement of debt.”

images Describe how the gain or loss on constructive retirement of intercompany bond holdings is allocated between the purchasing and issuing companies.

images Explain the impact on the consolidated financial statements when a company issues a note to an affiliated company, which then discounts the note with an outside company.

images Determine the effect on the consolidated financial statements when a subsidiary issues a stock dividend.

images Understand the difference in how stock dividends and cash dividends issued by a subsidiary company affect the consolidated financial statements.

images Determine the impact on the investment account when a subsidiary issues ...

Get Advanced Accounting, 5th Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.