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So far our discussion and focus has been on business combinations where 100% of another company has been acquired. In reality, complete ownership...

This question was answered on Jan 24, 2013. View the Answer
So far our discussion and focus has been on business combinations where 100% of another company has been acquired. In reality, complete ownership does not always take place. When a company does not acquire 100%, there is a noncontrolling interest (NCI) is held by another entity involved. The NCI can pose several reporting issues for accountants such as how to value the subsidiary’s accounts at consolidation and how to account for the NCI.

SFAS 160 is a new FASB requirement related to consolidations involving a noncontrolling interest. Discuss how SFAS 160 changed the treatment of noncontrolling interest in business combinations. Also, in your opinion, which treatment of noncontrolling interest presents the most conservative approach and why.
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SOLUTION:
An Entity acquired by another entity is said to have a controlling interest when it has acquired
more than 50% of the voting power stock and is required to prepare a consolidated report...

This question was asked on Jan 20, 2013 and answered on Jan 24, 2013.

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