ADMS 4520 Class 4 Notes

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1) Accounting Method Cost Cash Income Equity Cash Investment Investment Equity method income 2) How to calculate consolidated net income Parent's Net Income + Subsidiary's Net Income + Adjustments 3) Consolidation of 1005 Elimination of Investment Account: CV of Net Assets Investment Assets Goodwill Acquisition differential Liability Dividend Income reported by Parent: Subsidiary's B/S Equipment 350 P's CV + S's FV Consolidated B/S Equipment 500,000/10 + P's CV 4) NCI - 80% FV - CV P's CV + S's FV = FVA
ASPE, Impairment test 1) Intangible with indefinite + goodwill indicator 2) CV > Recoverable CV > FV 3) No reversal
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