For Each of the Following Situations,select the Best Answer Concerning

question 6

Essay

For each of the following situations,select the best answer concerning consolidating financial information where there is a non-controlling interest in the subsidiary:
(A)Acquisition method.
(B)Purchase method.
(C)Acquisition method and Purchase method.
_____ 1.Reflects the cost principle,but also assigns a value to the non-controlling interest shares at book value.
_____ 2.Recognizes the non-controlling interest has a value to be reported,but since it is not a part of the exchange transaction,no new basis of accountability arises.
_____ 3.Recognizes that management effectively controls 100% of the net assets acquired and is thus accountable for the entire fair value.
_____ 4.Requires the computation of an implied value.
_____ 5.Recognizes the full fair value of partially owned acquisitions.
_____ 6.Non-controlling interest is reported at an implied fair value.
_____ 7.Non-controlling interest is reported at book value.
_____ 8.Required by SFAS 141(R)Business Combinations.

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Definitions:

Confrontation

A direct engagement or challenge towards a disagreement or issue.

Apparent Feeling

an emotion that seems to be present based on observations of an individual's behavior or expressions but may not fully reflect their internal state.

Disappointment

The feeling of dissatisfaction that arises when one's expectations or hopes are not met.

Childhood Abuse

Experiencing physical, emotional, sexual, or neglectful harm during childhood, which can have long-lasting effects on mental and physical health.