Advanced Financial Accounting
e-mail: [email protected],
Consultation: by appointment
All questions would be posted to moodle on
All suggested solutions would be
BUSI0003_Advanced Financial Accounting_Ch.4_T5_sln
Solution to assignment questions: : [ MCs(1-2, 5-11, 13) + Q.22 ](Total: 28 marks)
7. C Consideration transferred by Pride .
Noncontrolling interest fair value .
Star acquisition-date fair value .
CHAPTER 20 INVENTORY MANAGEMENT, JUST-IN-TIME, AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net inco
The Equity Method of Accounting for Investments
Reporting Investments in Corporate Equity Securities
Approaches for reporting investments
1. Fair Value Method
3. Equity Method
Approaches _ interchangeable
Fair Value Method (<20%
Consolidation of Financial Information
Chapter 2: Consolidation of Financial Information
(HKFRS 3(revised), 10, 12)
Some Big M&A Deals in recent years
America Online Inc. (AOL)
Bank of America
JP Morgan Chase
Consolidations Subsequent to the Date of Acquisition
Consolidation as Time Passes
In Chapter 2, we looked at consolidation on the date of the combination was created.
As time passes, the investment account _, and the consolidation process
Consolidated Financial Statements and Outside Ownership
Noncontrolling Interest is the amount of the acquired companys stock that is
_ held by the parent.
The non-controlling interest in a sub is part of equity of the con
Consolidated Financial Statements
Intra-Entity Asset Transactions
Intra-Entity Inventory Transactions
Transactions between the parent and subsidiary are viewed as internal
transactions of a single _ entity.
The effects of those transactions sho
Chapter 006 Inventories and Cost of Sales
1. Goods in transit are automatically included in inventory.
2. Damaged and obsolete goods are not included in inventory if they cannot be sold.
3. Goods on consignment are goods shipped by their owner, called the
Cost and Benefit Analysis and
Some Big Ideas
Lecturer: Yujing Xu
University of Hong Kong
Special Thanks to Dr. Ka-fu Wong
o What is economics?
o Economics is the study of allocating scarce
resources to meet unlimited