Chapter 16 - Solution Manual

Although businesses usually have outputs outputs are

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Although businesses usually have outputs, outputs are not required for an integrated set to qualify as a business. The three elements of a business are defined as follows: a. Input. Any economic resource that creates, or has the ability to create, outputs when one or more processes are applied to it. Examples include long-lived assets (including intangible assets or rights to use long-lived assets), intellectual property, the ability to obtain access to necessary materials or rights, and employees. b. Process. Any system, standard, protocol, convention, or rule that when applied to an input or inputs, creates or has the ability to create outputs. Examples include strategic management processes, operational processes, and resource management processes. These processes typically are documented, but an organized workforce having the necessary skills and experience following rules and conventions may provide the necessary processes that are capable of being applied to inputs to create outputs. Accounting, billing, payroll, and other administrative systems typically are not processes used to create outputs. c. Output. The result of inputs and processes applied to those inputs that provide or have the ability to provide a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants . FASB ASC 16-4 Noncontrolling Interests Cross reference FAS 160 810-10-65 Transition Related to FASB Statements No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51, and No. 164, Not-for-Profit Entities: Mergers and Acquisitions 65-1 The following represents the transition and effective date information related to FASB Statements No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51, and No. 164, Not-for-Profit Entities: Mergers and Acquisitions : a. Except as noted in item (d), the pending content that links to this paragraph is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. b. The pending content that links to this paragraph shall be applied prospectively as of the beginning of the fiscal year in which that content is initially adopted, except for the presentation and disclosure requirements. The presentation and disclosure requirements shall be applied retrospectively for all periods presented, as follows: 1. The noncontrolling interest shall be reclassified to equity in accordance with paragraph 810- 10-45-16. 2. Consolidated net income shall be adjusted to include the net income attributed to the noncontrolling interest.
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354 3. Consolidated comprehensive income shall be adjusted to include the comprehensive income attributed to the noncontrolling interest.
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