Questions from Advanced Accounting

Q: What disclosures are required for a variable interest entity? Are the

What disclosures are required for a variable interest entity? Are the disclosures only required for VIEs that will be consolidated?

Q: Cite the conditions under which consolidated net income under parent-company

Cite the conditions under which consolidated net income under parent-company theory would equal income to controlling stockholders under entity theory.

Q: What is a joint venture and how are joint ventures organized?

What is a joint venture and how are joint ventures organized?

Q: Pet Corporation owns 90 percent of Sod Corporation’s common stock and Sod

Pet Corporation owns 90 percent of Sod Corporation’s common stock and Sod owns 15 percent of Pet, both acquired at fair value equal to book value. Separate incomes and dividends of t...

Q: What is a joint venture and how are joint ventures organized?

What is a joint venture and how are joint ventures organized?

Q: Compare the parent-company and entity theories of consolidated financial statements

Compare the parent-company and entity theories of consolidated financial statements.

Q: Under the entity theory, a total valuation of the subsidiary is

Under the entity theory, a total valuation of the subsidiary is imputed on the basis of the price paid by the parent company for its controlling interest. Do you see any practical or conceptual proble...

Q: If income from a subsidiary is measured under the equity method and

If income from a subsidiary is measured under the equity method and the statements are consolidated under entity theory, will consolidated net income equal parent net income?

Q: To what extent does push-down accounting facilitate the consolidation process

To what extent does push-down accounting facilitate the consolidation process?

Q: Assume that Pop Corporation acquires 60 percent of the voting common stock

Assume that Pop Corporation acquires 60 percent of the voting common stock of Son Corporation for $6,000,000 and that a consolidated balance sheet is prepared immediately after the acquisition. Would...