Business Combinations and Consolidations Flashcards
As per serial of Test Bank of Wiley
Info
Started on 16th August 2014 @ 10.05 Am
Total questions 43
To do at a time 43
Practice session 75
As per serial of Test Bank of Wiley
Business acquisition cost is……………
and registration and issuance cost for common stock is deducted from………………
expenses
APIC
As per serial of Test Bank of Wiley
Business acquisition, plant and equipment, market value is greater than book value then excess will go to……………
Plant and equipment
As per serial of Test Bank of Wiley
**Non controlling interest in IFRS has two ways
Fair value and proportionate share.
As per serial of Test Bank of Wiley
**Under IFRS, a parent may exclude a subsidiary from consolidation if all of the following conditions exist, except:
Need to understand.
As per serial of Test Bank of Wiley
**Which statement is true with respect to push-down accounting?
Need to understand.
As per serial of Test Bank of Wiley
A 70%-owned subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and non controlling interest balances in the parent company’s consolidated balance sheet?
No effect on retained earnings and a decrease in minority interest.
Why?
As per serial of Test Bank of Wiley
In business acquisition issued shares 100k asset acquired 60k. What will be the increase?
Finder’s fee will be treated as?
100 K
Expense
As per serial of Test Bank of Wiley
How should under the acquisition method, the acquired assets and liabilities are reported.
At their fair values.
As per serial of Test Bank of Wiley
Parent sold machine at profit to sub. depreciation method changed, how it would be treated?
Adjustment for profit and depreciation. Same year and future years.
As per serial of Test Bank of Wiley
In identifying the acquiring entity in a business combination, all of the following factors should be considered except:
Need to understand.
As per serial of Test Bank of Wiley
Company A paid company B $ 4,000.00 and when computing retained earning will this be subtracted?
Yes
As per serial of Test Bank of Wiley
Which of the following should be deducted in determining the combined corporation’s net income for the current period?
Direct costs of acquisition
General expenses related to acquisition
Yes
