Initial Consolidation

Question 1

Companies listed at the Swiss Stock Exchange always have to prepare their financial statements in accordance with the guidelines of ?

Answer 1

Swiss GAAP FER

Question 2

Means that the entity in question is included in the scope of consolidation for the first time…

Answer 2

Initial consolidation

Question 3

Assets, provisions, etc

Answer 3

Needs to be reevaluated,

Question 4

Revaluations

Answer 4

Question 5

What is goodwill?

Answer 5

A comparison of the revalued net assets with the purchase price shows whether the purchase price was above or below this amount and results in the derivation of goodwill

Therefore, goodwill represents a premium paid for assets that cannot be identified and recognized separately.

Question 6

Different situations of Goodwill

Answer 6

Question 7

Goodwill accounting per acquisition

Answer 7

Question 8

Elimination of investment against equity per acquisition

Answer 8

− The consolidated financial statement results…
− by charging the acquisition cost (value of the
investment) of the parent against the amount of the revalued equity of the subsidiary per acquisition; and
− with aggregation of all the other items.
− The resulting consolidated financial statement shows…
− the assets and liabilities of both entities;
− the premium paid for the subsidiary (goodwill);
− the equity of the parent.