Purus Corporation has a financial relationship with Swift Financial Inc. Although Purus owns none of Swift's...
Purus Corporation has a financial relationship with Swift
Financial Inc. Although Purus owns none of Swift's voting stock,
analysis determines that Swift is a variable interest entity and
Purus is its primary beneficiary.
How is the noncontrolling interest in Swift reported on Purus'
consolidated balance sheet at the date Purus first consolidates it,
assuming Swift and Purus were already under common control?
|
A. |
In the equity section of the consolidated balance sheet, at Swift's book value. |
|
|
B. |
As an investment account in the asset section of Purus' consolidated balance sheet, at Swift's book value. |
|
|
C. |
As an investment account in the asset section of Purus' consolidated balance sheet, at Swift's fair value. | |
|
D. |
In the equity section of the consolidated balance sheet, at Swift's fair value. |
Homework Answers
D. In the equity section of the consolidated balance sheet, at Swift's fair value.
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