Questions from Advanced Accounting

Q: Ashton Inc. acquired a 40% interest in Villa Corp.

Ashton Inc. acquired a 40% interest in Villa Corp. for $200,000. In the first year after acquisition, Villa reported a loss of $700,000. Using the equity method, how should Ashton account for this los...

Q: Able Company holds a 40% interest in Baker Corp. During

Able Company holds a 40% interest in Baker Corp. During the year, Able sold a portion of this investment. How should this investment be reported after the sale?

Q: What key element must be present in a business combination?

What key element must be present in a business combination?

Q: What are some reasons for the acquisition cost being in excess of

What are some reasons for the acquisition cost being in excess of the carrying amount of the acquiree's assets and liabilities? What does this say about the accuracy of the values used in the financia...

Q: How is goodwill determined at the date of acquisition? Describe the

How is goodwill determined at the date of acquisition? Describe the nature of goodwill.

Q: When must an intangible asset be shown separately from goodwill? What

When must an intangible asset be shown separately from goodwill? What are the criteria for reporting these intangible assets separately from goodwill?

Q: Does the historical cost principle or fair value reporting take precedence when

Does the historical cost principle or fair value reporting take precedence when preparing consolidated financial statements at the date of acquisition under the acquisition method? Explain.

Q: What are separate financial statements, and when can they be presented

What are separate financial statements, and when can they be presented to external users in accordance with IFRS?

Q: It is common for an NFPO to receive donated supplies, equipment

It is common for an NFPO to receive donated supplies, equipment, and services. Do current accounting standards require the recording of donations of this kind? Explain.

Q: What are protective rights, and how do they affect the decision

What are protective rights, and how do they affect the decision of whether one entity has control over another entity?