高级财务会计陈信元chapter8.pptVIP

12 Chapter 8 Changes in Ownership Interest 1. Interim Acquisition of Interests 11. Preacquisition earnings (PE) 1) concept: purchased income ? S’s net income prior to acquisition 2) consolidation ? PE should be eliminated from consolidated net income by either of two methods - partial year consolidation - full year consolidation ? APB Opinion No. 51: full year consolidation income statement includes all revenues and expenses total consolidated income LESS Preacquisition earnings Noncontrolling interest share Equals Controlling interest share ? FASB Statement No. 160: partial year consolidation income statement includes revenues and expenses since acquisition total consolidated income LESS Noncontrolling interest share Equals Controlling interest share In the textbook, we adopt partial year consolidation 12. Preacquisition dividends (PD) ? It should also be eliminated, because they are not a part of the equity acquired. ? the reason for including PE PD in the working paper entry is that subsidiary equity balances are eliminated as of the beginning of the period and the investment balance is eliminated as of the date of acquisition within the period (and thus reflects PE PD). ? book value of equity is needed as of acquisition date adjust the beginning value for changes before acquisition: beginning BV equity + preacquisition revenues – preacquisition expenses – preacquisition dividends = BV equity at acquisition sales and expenses might be assumed level 13. Working paper entries ? Income from S ×× Dividends (after acquisition) ×× Investment in S ×× ? Preacquisition income ×× Capital stock ×× Retained earnings,beginning ×× Dividends (pre-acquisition) ×× Investment in S ×× Noncontrolling interest, beginning ×× ? NCI share