9/19 class Flashcards
1
Q
Fair Value Method
A
dangit
2
Q
parents books
A
Investment account contains the acquisition cost
3
Q
Subs books
A
balance sheet assets and liab are recorded at book values
income statement: expenses calculated based on book values
4
Q
nets assets
A
equity
CS
APIC
RE
5
Q
only time you adjust to FV is
A
when there is a third party
6
Q
differential
A
FV - the book value
7
Q
errors
A
you change on the books of the sub, but when it is appraised it is only on the consolidated financial statements
8
Q
acquisition costs
A
only the costs that are associated with the acquisition, the costs of issuing stock we capitalize
9
Q
acquisition costs
A
only the costs that are associated with the acquisition, the costs of issuing stock we capitalize
