Conolidation at Date of Combination Summer I 2009

Conolidation at Date of Combination Summer I 2009 -...

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Accounting 401 Consolidated Balance Sheets Summer I 2009 A. When stock acquisitions occur, there is a need for consolidated financial statements. With these types of combinations the company that acquires the stock in the other company or companies is called the parent. The company or companies in which the stock is acquired are called the subsidiary or subsidiaries . B. Discuss de-facto versus de-jure control of companies. C. The acquisition method is the preferred method to use when recording (accounting for) business combinations. D. Non-Controlling or Minority Interest – Interest in the net assets of subsidiaries held by other than the parent company. E. Consolidation Elimination entries – These entries are purely worksheet entries. The purpose of these entries is to eliminate inter-company effects and adjust the accounts so that consolidated financial statements may be prepared. Elimination entries are not posted to any set of books
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Conolidation at Date of Combination Summer I 2009 -...

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