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Unformatted text preview: 1 | P a g e 1 | P a g e Week 4 13 Jan. (DM) Lecture Topic 7 Consolidation: Introduction and Basics Acquisition analysis for business combination o Allocation of cost of business combination o Measurement of goodwill or excess Explain the meaning of control and identify the group subject to consolidation Prepare the pre-acquisition entries for the investment asset in the subsidiary Fair value adjustments on consolidation including tax consequences Prepare basic consolidation worksheet o Line-by-line aggregation o Eliminations and adjustments Seminar Questions: Picker et al, Ch.22 DQ22 Picker et al, Ch.23 Exercise 23.3 DQ 22--22. Required Provide a report to Lizard Ltd on whether it should regard Wombat Ltd as a subsidiary in its preparation of consolidated financial statements at 30 June 2010. 40% Lizard Ltd Wombat Ltd - NCI is 60% - 65% of voters attended AGM - no block holdings of shares Discuss: - the concept of control - the need for judgement - factors to consider when determining the existence of control...
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This note was uploaded on 01/19/2012 for the course ACCT 2542 taught by Professor Knapp during the Three '11 term at University of New South Wales.
- Three '11
- Financial Accounting