Sometimes an investor's level of influence changes, making it necessary to change from the equity method to

Question:

Sometimes an investor's level of influence changes, making it necessary to change from the equity method to another method. How should the investor account for this change in accounting method?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

See More Books

Question Posted: Jul 02, 2013 06:18 AM

See More Questions

While visiting a client, you hear employees arguing about the accounting for sales returns. The Sales Manager believes that granting more generous return provisions can give the company a competitive...
The Hannam Company decided to change from the declining- balance method of depreciation to the straight- line method effective 1 January 20X7. The following information was provided: The company has...
How should a company account for its start-up costs, and its share issue costs? How should a company account for the fees paid to an underwriter?
A teacher traces a small circle on the palm of a kindergartener's hand to let him know it is time for free play. What type of disability does this child most likely have? A. Traumatic Brain Injury B....
Show how you would use a protecting group to convert 4-bromobutan-1-ol to hept-5-yn-1-ol.
A fluid is described by the Clausius equation of state where b is a constant. Also, the ideal gas heat capacity is given by For this fluid, obtain explicit expressions for a. A line of constant...
(a) A brick slides more easily on ice than on wood. For which combination (brick on ice or brick on wood) is $\mu_{s}$ larger? (b) For rubber on dry asphalt, $\mu_{s}$ is about 1 . Ignoring any...
Brandon Corporation had the following stockholders equity accounts on January 1, 2012: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par Common Stock $200,000, and Retained Earnings...
Suppose we have a nMOSCAP made of Si. Suppose the channel doping is too strong at p = 1019 cm-3. All plots should assume the metal is on the left side. For this problem, we apply Vgs = Vth. (a) Plot...
You are called by the daughter of an elderly woman who lives alone. The daughter lives in another city and is concerned because her mother does not drive and has seemed unhappy and listless on the...
Superior Company owns 40% of the outstanding stock of Bernard Company. During 2011, Bernard paid a $100,000 cash dividend on its common shares. What effect did this dividend have on Superior's 2011...
How does IFRS differ from U.S. GAAP with respect to using the equity method?
Based on seven years of data collected by Transport Canada, 45.8% of all bird strikes on moving aircraft involve gulls. Suppose that the next year, planes are asked to emit gull-repelling sound...
For each of the business transactions listed below, you are to enter in the Workbook: a the account name, with the debit account first b whether the account entry is a debit or credit c the chart of...
The business commenced with $5000 in assets and $5000 in owners equity. Write this in the accounting equation format provided in the Workbook.
What is the difference between: taxable supplies input-taxed supplies GST-free supplies?
From the following business transactions you are required to show, in the Workbook, the effects on the accounting equation, using the above format. (This solution is used in questions 3.12 and 3.16.)...
What is the difference between inventories and supplies?
When we said that your SO 3 reaction was stuck, we meant that it had stopped. Did it really stop, and how does your answer help explain why we can also describe the reaction as being in a state of...
Which should drive action planning more, strengths or weaknesses? That is, is it more important to build on your strengths or to reduce your weaknesses? Explain.
Describe the different types of training. How do organizations provide each type of training?
Notes Receivable with Unrealistic Interest Rate On December 31, 2009, Hurly Co. performed environmental consulting services for Cascade Co. Cascade was short of cash, and Hurly Co. agreed to accept a...
Analysis of Receivables Presented below is information for Grant Company. 1. Beginning-of-the-year Accounts Receivable balance was $15,000. 2. Net sales (all on account) for the year were $100,000....
Analysis of Receivables Presented below is information for Grant Company. 1. Beginning-of-the-year Accounts Receivable balance was $15,000. 2. Net sales (all on account) for the year were $100,000....
a) Based on the information provided in the table below: i. Describe the impact of the cost behavior on economies of scale, constant returns to scale, and diseconomies of scale in each firm?...
Use the following information to answer questions below: Total current assets Total non-current assets Total current liabilities Long-term borrowings Share capital Revenue Gross profit Retained...
A Public Information Officer ( PIO ) for a public safety or emergency management agency might expect to spend what portion of his or her time on activities directly related to incident response or...

Sometimes an investor's level of influence changes, making it necessary to change from the equity method to

Question:

Step by Step Answer:

When it becomes necessary to change from the equity method to another method no adju...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions