what is a "non-controlling interest"? How is it accounted for on the subsidiary's, the parent's, and...
what is a "non-controlling interest"? How is it accounted for on the subsidiary's, the parent's, and the consolidated financial statements? Why would a firm desire a non-controlling interest in another firm? Explain.
Homework Answers
Non controlling interest also known as minority interest.
It means owning a stake in the company which is not more than 50% of the total stake. This doesn't involve much of a capacity to voting power.
It can be contrasted with controlling interest which means substantial holding in the company.
There is no accounting treatment in the subsidiary but in the parent company, subsidiaries Accounts are to be consolidated to give a overall view of the complete worth and efficiency of the parent company.
There are no much reasons for desiring a non controlling interest. Cash dividends stands as the main reason to go for non controlling interest and also a little voting power as granted.
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what is a "non-controlling interest"? How is it accounted for on
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How do you solve for C? Co. 1. Several years ago Polar Inc, acquired an 80% interest in Icecap Co. The book values o...
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do you solve for C?
Co. 1. Several years ago Polar Inc, acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar's acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction. The following selected account balances were from the individual financial records of these two companies as of December...
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looking for help on question 2 a-h.
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Several years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were.considered to be equal to their fair values. Polar's acquisition value coIresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction. The following selected account balances were from the individual financial records of these two companies as of December 31, 2013 Polar Icecap Co. $ 504,000 276,000 147,000...
How
do you solve for C?
Co. 1. Several years ago Polar Inc, acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar's acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction. The following selected account balances were from the individual financial records of these two companies as of December...
looking for help on question 2 a-h.
Questions 1. CCES Corporation acquires a controlling interest in Schmaling, Inc. CCES may utilize any one of three methods to internally account for this investment. Deseribe ench of these methods, and indicate their advantages and disadvantages. 2. Maguire Company obtains 100 percent control over Williams Company. Several years after the takeover, consolidated financial statements are being produced. For each of the following accounts, briefly describe the values that should be included in consolidated...
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