Midterm Flashcards
(32 cards)
What is required for control?
Power + exposure to var. return + linkage
If you buy a company with a single important asset, you likely entered into…
Asset deal
What equity do you include in the consolidated FS form the parent?
All the equity.
What equity do you include in the consolidated FS from the subsidiary?
Only post acquisition generated equity.
How can goodwill go down in the consolidated FS?
Impairment
What is meant by line-by-line consolidation?
We add all assets and liabilities to arrive to cons figures.
Goodwill may arise
On business combinations.
If the acquisition was done on 3rd May and you prepare the FS for 3rd May how much is PAP of S?
0
Downstream URP
is deducted from group RE
Who is exempt from consolidation?
If the parent at the same time is a subsidiary
Negative goodwill
Shall be included in net profit
When consolidating NCI
you include all the assets and liabilities of the entity
In transit items are
will be included to those financials that it goes to
Cost of control may be determined from the
BS, Investment line
When consolidating the income statement of a group with a single subsidiary
dividend received by H is eliminated
If there is FSA, the fair value adjustment shall be done
in W2
Which entity may not be an associate?
An entity where we make all the decisions.
Goodwill on associates
May happen but will not be separated from the associate
What is included in the book value of an associate?
SOPIA, “Goodwill”, Net assets @A
Which out of these will be included in W5?
Downstream URP, PAP of S
Which asset may be recognised under FSA?
Fair value difference of a machine of subsidiary, contingent liability of the subsidiary
Which consolidation method is not available for consolidation?
Proportionate consolidation
What equity do you include in the consolidated FS from the parent?
All the equity
Which is NOT included in the book value of an associate?
Negative goodwill
