explain factors that must be considered in determining whether a corporation has control of another entity for the purpose of determining whether consolidated financial statements should be prepared.
The following circumstances are where in the company prepares consolidated financial statements :
1.When the company has majority control over the ownership of the shares.
2. When if the company has substantial voting rights such that it is able to influence to the decision making process.
The above are as per the guidelines of US GAAP which primarily prescribes two methods, variable interest method and voting method.
explain factors that must be considered in determining whether a corporation has control of another entity for the purpo...
What are the key factors that should be considered in determining whether a financial statement amount is 'material'? Should auditors apply the same materiality guidelines or benchmarks as financial accountants?
(8 marks Question 5 The following table shows factors to be considered when determining whether a parent-subsidiary relationship exists. Factor А B C Description Significant influence Control Non-controlling interest Greater than 50% of the equity shares being held by an investor 100% of the equity shares being held by an investor Greater than 50% of the preference shares being held by an investor 50% of all shares and all debt being held by an investor G H Greater than 50%...
Which of the following statements is true? If a company has control over the financial policies of another entity, it is deemed to have control over the operating policies. Joint control can exist where share ownership by investing companies is not equal. A reporting entity is a single entity that meets certain criteria. Control of a subsidiary must be actively exercised
Fargo Corporation has a long-term investment in the common stock of another entity. The investment does not render the investor with the ability to exercise significant influence or control over the investee. A journal entry to record a $10,000 decline in market value below cost would necessarily involve:
Part One Explain what you think are the most important factors in determining which birth control method women should use. Consider the individual’s choice related to the method, age of user, ease of use, plan for pregnancy (or not), health concerns related to use of a method, and resources available to assist women in choosing a method. Part Two Research birth control for men. How do you feel about the idea of men having responsibility for birth control?
QUESTION 11 0.1 points Save Answer Internal auditors must be independent of the entity that employs them. must be CPAs. generally report to the accounting department. are employed by all types of organizations. QUESTION 12 0.1 points Save Answer An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit? compliance audit operational audit financial statement audit O production audit QUESTION 13 0.1 points Save Answer Most public...
Some of the states use, in determining whether an out-of-state entity has income tax nexus: a. Both a. and b are used by certain states. b. Neither a. nor b is used by the states. c. A factor-presence test. d. An economic presence test.
An S corporation is considered a flow-through business entity that has the advantages of both the corporation and proprietorship. Discuss the general rules that govern S corporations. What are some of the operational rules that effect various code provisions on S corporations? Go to www.irs.gov and provide a synopsis of the similarities and differences between S corporations and one other form of business
An S corporation is considered a flow-through business entity that has the advantages of both the corporation and proprietorship. Discuss the general rules that govern S corporations. What are some of the operational rules that effect various code provisions on S corporations? Go to www.irs.gov and provide a synopsis of the similarities and differences between S corporations and one other form of business
which of the following statements is correct regarding the new pass through entity business deduction? a. It can never come into play for a capital intensive business, b. It can never come into play for a business that does not pay any W-2 wages, c. It can never be claimed by a service provider such as a doctor, attorney, or CPA, d. It must be considered in evaluating whether a business should be operated as a pass through entity or...