Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 3.1C
To determine
Introduction:
Total Assets Value:The consolidated financial statements are the one which are prepared for providing a consolidated view of financial activities of the company having subsidiary companies. Total assets here means sum total of assets owned by a concern over another concern.
The validity of the relationship and factors which causes differences in the computation of valuation.
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Which statement is incorrect regarding reclassification of financial assets?
Group of answer choices
None of these.
Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently.
An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest.
An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.
Which statement is incorrect regarding reclassification of financial assets?
A. Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently.
B. None of these.
C. An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest.
D. An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.
True or False
Pls indicate if the statements are true or false.
1. The worksheet eliminations prepared subsequent to acquisition remove the allocated excess/purchase differential amortizations from the consolidated financial statements.
2. Allocated excess/purchase differential amortizations result in the Investment Income account disclosing the income that would have been allocated to the parent had the subsidiary’s financial records disclosed the market value of its assets and liabilities.
3.
Chapter 3 Solutions
Advanced Financial Accounting
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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- Which statement is incorrect regarding reclassification of financial assets? An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest. Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently. None of these. An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.arrow_forwardAn entity has financial assets held under a business model with the objective of holding financial assets in order to collect contractual cash flows. Prior to maturity date, the entity sells a significant portion of the financial assets. Which of the following statements is correct? The remaining financial assets within the "hold to collect" business model need not be reclassified. However, the change in circumstance may be relevant in assessing the business model for new financial assets that have been acquired or originated. The change in circumstance is a prior period error. Under the "hold to collect" business model, the entity needs to hold financial assets until their maturity dates. A significant sale of financial assets before their maturity date evidences an inability to hold and collect cash flows. Therefore, the remaining financial assets shall be reclassified to either FVPL or FVOCI. The entity shall change its business model because of the change in circumstance. The…arrow_forwardHow should negative goodwill be shown on the consolidated financial statements of the acquirer? Group of answer choices As a liability on the statement of financial position As a loss on the statement of comprehensive income As a separate amount under shareholders' equity on the statement of financial position As a gain on the statement of comprehensive incomearrow_forward
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