On January 1, 2019, Doha Company acquired all the shares of Brisbane Company, which is a public relations company located in Australia. It is important to note that Doha Company uses GAAP, while Brisbane Company uses IFRS. one year later on December 31, 2019 (The two companies’ financial year-end), the accountants at Doha Company were in the process of consolidating the financial statements for the two companies and noticed irregularities in Brisbane Company’s accounting records. help verify whether these issues should be addressed or overlooked. And give a solution.
the issue:
The above issue has been addressed. At the most the provision should have been $ 15000 on conservative basis. The issue is already addressed by Brisbane company.
On January 1, 2019, Doha Company acquired all the shares of Brisbane Company, which is a public relations company locate...
In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $212,000 both before and after Miller’s acquisition. On January 1, 2019, Taylor reported a book value of $492,000 (Common Stock = $246,000; Additional Paid-In Capital = $73,800; Retained Earnings = $172,200). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $65,600. During the next three years, Taylor reports income and declares dividends as follows: YearNet IncomeDividends2019$57,700$8,400202075,60012,700202184,60017,000 Determine the...
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $800,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $200,000 both before and after Miller’s acquisition. On January 1, 2019, Taylor reported a book value of $674,000 (Common Stock = $337,000; Additional Paid-In Capital = $101,100; Retained Earnings = $235,900). Several of Taylor’s buildings...
Case Study Analysis: Fred Stern & Company, Inc. (Knapp): In the business world of the Roaring Twenties, the schemes and scams of flimflam artists and confidence men were legendary. The absence of a strong regulatory system at the federal level to police the securities markets—the Securities and Exchange Commission was not established until 1934—aided, if not encouraged, financial frauds of all types. In all likelihood, the majority of individuals involved in business during the 1920s were scrupulously honest. Nevertheless, the...