accountingcorner.blogspot.com
accounting corner: Parent & Subsidiary Company
http://accountingcorner.blogspot.com/2009/02/parent-subsidiary-company.html
Parent and Subsidiary Company. A corporation that owns a majority of the outstanding voting stock of another corporation (its subsidiary). A corporation that is controlled by a parent company that owns a majority of its outstanding voting stock, either directly or indirectly. Companies that are controlled by a single management team through parent-subsidiary relationships. (Although the term affiliate is a synonym for subsidiary, the parent company is included in the total affiliation structure.).
accountingcorner.blogspot.com
accounting corner: Consolidated Financial Statements
http://accountingcorner.blogspot.com/2009/02/consolidated-financial-statements.html
The massive amount of numbers in a company's financial statements can be bewildering and intimidating to many investors. On the other hand, if you know how to analyze them, the financial statements are a gold mine of information. The balance sheet represents a record of a company's assets, liabilities and equity at a particular point in time. The balance sheet is named by the fact that a business's financial structure balances in the following manner :. Assets = Liabilities Shareholders' Equity. The stat...
accountingcorner.blogspot.com
accounting corner: Goodwill In Business Combinations
http://accountingcorner.blogspot.com/2009/02/goodwill-in-business-combinations.html
Goodwill In Business Combinations. Goodwill arises in a business combination accounted for under the purchase method when the cost of the investment (price paid plus direct costs) exceeds the fair value of identifiable net assets acquired. Under FASB Statement No. 142. Goodwill is no longer amortized for financial reporting purposes and will have no effect on net income. Negative goodwill is the opposite of goodwill. Subscribe to: Post Comments (Atom). Slide and Exams Advanced Acc.
accountingcorner.blogspot.com
accounting corner: Business Combinations
http://accountingcorner.blogspot.com/2009/02/business-combinations_04.html
The dissolution of all but one of the separate legal entities is not necessary for a business combination. An example of one form of business combination in which the separate legal entities are not dissolved is when one corporation becomes a subsidiary of another. In the case of a parent-subsidiary relationship, each combining company continues to exist as a separate legal entity even though both companies are under the control of a single management team. Subscribe to: Post Comments (Atom).
accountingcorner.blogspot.com
accounting corner: February 2009
http://accountingcorner.blogspot.com/2009_02_01_archive.html
Parent and Subsidiary Company. A corporation that owns a majority of the outstanding voting stock of another corporation (its subsidiary). A corporation that is controlled by a parent company that owns a majority of its outstanding voting stock, either directly or indirectly. Companies that are controlled by a single management team through parent-subsidiary relationships. (Although the term affiliate is a synonym for subsidiary, the parent company is included in the total affiliation structure.). Financ...
accountingcorner.blogspot.com
accounting corner: January 2008
http://accountingcorner.blogspot.com/2008_01_01_archive.html
For a finite-time period, the accounting principle can be written in the accumulation form:. Final amount - Initial amount = Amount entering - Amount leaving Amount generated - Amount consumed. For a specified time interval, the amount accumulated within the system equals the net amount that enters the system plus the net amount generated within the system. For an infinitesimal-time period, the accounting principle can be written in the rate form:. How can it be stored within the system?
accountingcorner.blogspot.com
accounting corner: February 2008
http://accountingcorner.blogspot.com/2008_02_01_archive.html
Lower of Cost or Market. Assume it is the end of December 2006 and your retail store has 20 digital cameras in inventory. You purchased the cameras directly from the manufacturer at a cost of $150 each and you planned to sell the cameras at a retail price of $200, a price that is in line with competing retailers. When and how should this loss be reported on your store's income statement? Should the loss be reported as a smaller gross profit when the cameras are sold in January 2007? While the conservatis...
