Select True (T) or False (F) for Each of the Following

question 14

Essay

Select True (T) or False (F) for each of the following statements:
_____ 1. A parent will recognize a gain or loss if it sells a portion of its investment in a subsidiary and maintains control after the sale.
_____ 2. A parent sells a portion of its investment in a subsidiary and no longer maintains control. This sale of shares represents a remeasurement event for the investee.
_____ 3. International financial reporting standards (IFRS) allow an option to value the non-controlling interest with goodwill or to value the non-controlling interest without goodwill.
_____ 4. Consolidated net income represents the combined net income of the parent and subsidiary after subtracting the non-controlling interest in the net income of the subsidiary.
_____ 5. The total acquisition-date fair value of an acquired firm is the sum of the fair value of the controlling interest and the fair value of the non-controlling interest.
_____ 6. When control of a subsidiary is acquired on a date other than the first day of a fiscal year, excess amortization expenses are pro-rated to include only the post-acquisition period.
_____ 7. For a mid-year acquisition following an equity method investment of the same company, the consolidated income statement will report consolidated revenues and expenses for the entire year.
_____ 8. In a step acquisition where the parent previously held a non-controlling interest in the acquired firm, the parent remeasures the prior interest to fair value.
_____ 9. When a parent has control over a subsidiary with less than 100 percent ownership, and thereafter increases its ownership, the parent remeasures the prior interest to fair value.

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Definitions:

p < .05

A statistical term indicating that the probability of the observed data, or more extreme, if the null hypothesis were true, is less than 5%, often used as a threshold for statistical significance.

Experimental Group

In research, a group of subjects who receive the treatment or variable being tested for its effect.

Control Group

The group in an experiment or study that does not receive the experimental treatment, serving as a baseline for comparison with the experimental group.

Mathematical Summaries

The use of statistics, such as mean, median, mode, and range, to provide a comprehensive overview of numerical data.