Question

In its 1995 exposure draft, “Consolidated Financial Statements: Policy and Procedures,” the FASB proposed that a company’s outside interest (“noncontrolling interest”) be reported as an element of stockholders’ equity. Current practice now requires that noncontrolling interest be reported in stockholders’ equity, but separate from equity belonging to the parent company. This practice differs from IAS No. 27, which requires that noncontrolling interest be presented above stockholders’ equity, as well as from the majority of current practice that conforms to the international requirement.
In your arguments for the following debate, you should consider the conceptual framework and be grounded on a theory of consolidation (entity the-ory or parent company theory).
Team Debate:
Team 1: Argue in favor of presenting the noncontrolling interest as an element of stockholders’ equity.
Team 2: Argue in favor of presenting the noncontrolling interest outside of stock-holders’ equity.



$1.99
Sales0
Views72
Comments0
  • CreatedDecember 17, 2014
  • Files Included
Post your question
5000