Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in the preparation of consolidated financial state

In the preparation of consolidated financial statements, why are adjustments required to the subsidiaries assets...

50.1K

Verified Solution

Question

Accounting

In the preparation of consolidated financial statements, why are adjustments required to the subsidiaries assets and liabilities if the carrying amounts are not equal to fair value?

Using the following example, demonstrate the adjustment required when the subsidiary has a contingent liability for damages disclosed, for which the fair value is determined to be $10,000. Explain in detail the journal entry, line by line. Then show how this would be posted in the consolidation worksheet, highlighting the effect to the group's financial statements

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Create frequency table (including  include class interval, frequency, relative frequency and cumulative relative frequency. ) and frequency polygon. Please...

Statistics
Q

A missionary couple, living in West Africa bought their 4-year old son to the Emergency room...

Biology
Q

3 1 kPa 4 Zero 38 A gas takes part in thermodynamic process in which...

Physics
Q

Read the following sentence which contains grammatical errors Alexander finally answered after taking a few...

Basic Math
Q

7 1 point Sally is running a sunblock factory and there is a machine to...

Calculus
Q

Shannon Company segments its income statement into...

Accounting
Q

Benson Services Company has 56 employees, 35 of whom are assigned to Division A and...

Accounting
Q

Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking...

Accounting
Q

REQUIRED Prepare the Partnership Return for the Holloway And Forrow Enterprises for the year of...

Accounting
Q

Andretti Company has a single product called a Dak. The company normally produces and sells...

Accounting
Q

1. Assume the following: Estimated fixed manufacturing overhead for the coming period of $207,00....

Accounting
Q

ABC Company estimates the following data for the coming month Total...

Accounting