高级财务会计陈信元chapter8.ppt

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1、Chapter8ChangesinOwnershipInterest1.InterimAcquisitionofInterests11.Preacquisitionearnings(PE)1)concept:purchasedincomeS’snetincomepriortoacquisition2)consolidationPEshouldbeeliminatedfromconsolidatednetincomebyeitheroftwomethods-partialyearconsolidation-fullyearconsolidation9/2/20211APBOp

2、inionNo.51:fullyearconsolidationincomestatementincludesallrevenuesandexpensestotalconsolidatedincomeLESSPreacquisitionearningsNoncontrollinginterestshareEqualsControllinginterestshareFASBStatementNo.160:partialyearconsolidationincomestatementincludesrevenuesandexpensessinceacquisitiontotalco

3、nsolidatedincomeLESSNoncontrollinginterestshareEqualsControllinginterestshareInthetextbook,weadoptpartialyearconsolidation9/2/2021212.Preacquisitiondividends(PD)Itshouldalsobeeliminated,becausetheyarenotapartoftheequityacquired.thereasonforincludingPE&PDintheworkingpaperentryisthatsubsidiar

4、yequitybalancesareeliminatedasofthebeginningoftheperiodandtheinvestmentbalanceiseliminatedasofthedateofacquisitionwithintheperiod(andthusreflectsPE&PD).bookvalueofequityisneededasofacquisitiondateadjustthebeginningvalueforchangesbeforeacquisition:beginningBVequity+preacquisitionrevenues–prea

5、cquisitionexpenses–preacquisitiondividends=BVequityatacquisitionsalesandexpensesmightbeassumedlevel9/2/2021313.WorkingpaperentriesIncomefromS××Dividends(afteracquisition)××InvestmentinS××Preacquisitionincome××Capitalstock××Retainedearnings,beginning××Dividends(pre-acquisition)××Investmentin

6、S××Noncontrollinginterest,beginning××NCIshare××Dividends××Noncontrollinginterest××14.Illustration(p.274-277)9/2/202142.PiecemealAcquisition21.FMVdeterminationatwhatpointshouldFMVbedeterminedfortheS’identifiablenetassets?onthedatewhenPobtaincontrolofSCost-BVdif.arisingfromtheacquisition

7、beforeP’scontrolofScouldbeconsideredtobegoodwill22.P’srecords:sameasthoseinChapter223.Workingpaperentries:sameasinchapter424.Illustration(p.278-279)3.SaleofOwnershipInterest31.AccountingProcedureFASBStatementNo.160changestheruleforcon