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:

Ethical Theory

Philosophical studies that explore the principles of right and wrong conduct, often serving as the foundation for moral decision-making and actions.

Domains

Areas of interest, activity, or knowledge that are distinct and separate but can overlap with others in certain aspects.

Honesty

The quality of being truthful, transparent, and free from deceit or fraud in one's actions and communications.

Leadership

The process of influencing and guiding others towards the achievement of shared goals, often involving vision, direction, and motivation.