LN10合并报表编制技巧(英文版).pptxVIP

Chapter10

SubsidiaryPreferredStock,ConsolidatedEarningsPerShare,andConsolidatedIncomeTaxation

PreferredStock,EPS,andTaxes:ObjectivesModifyconsolidationproceduresforsubsidiarycompanieswithoutstandingpreferredstock.Calculatebasicanddilutedearningspershareforaconsolidatedentity.Understandthecomplexitiesofaccountingforincometaxesbyconsolidatedentities.

1:PreferredStockSubsidiaryPreferredStock,ConsolidatedEarningsPerShare,andConsolidatedIncomeTaxation

SubsidiaryPreferredStockSubsidiarypreferredstockDoesntchangeconsolidationinprincipleDoesimpactcalculationsCommonstockholdersequity=totalequitylesspreferredstockatbookvalueIncomeofsubsidiaryisfirstallocatedtopreferredshareholders,thenCIandNCISubsidiarydividendpaymentsmustconsiderpaymentstopreferredshareholdersbeforecommonshareholders

WhoHoldsPreferredStock?PreferredstockisheldbyoutsidersPreferredstockisanoncontrollinginterestPreferredstockisheldbyparentMaychoosebetween:ConstructiveretirementCostbasis

ReviewofPreferredStockCharacteristicsCallable,redeemableCumulativeornoncumulativeParticipativeornon-participativeLimitedvotingrightsMostiscumulativeandnonparticipatingBookValueofPSis:Callorredemptionprice(parvalueifneither)PlusDividendsinarrears(ifcumulative) IncomeallocatedtoPSis:Currentperioddividendirrespectiveofamountdeclared,ifcumulativeDeclaredamountifnoncumulativePotentiallymoreifparticipativePreferredstockdividendis:FacevaluexdividendrateAlsoconsider:ArrearageParticipation

Example:PSHeldbyOutsidersPoebuys90%ofSolfor$396whenSolsequityconsistsof$100preferredstock,$200commonstock,$40otherpaidincapitaland$160retainedearnings.Thepreferredstockiscumulative,nonparticipating,carriesa10%dividendandiscallableat105%ofparvalue.Thereisnoarrearage.Duringtheyear,Solearns$50andpays$30individends.

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