Why cant we simply add together all of the separate profit and loss accounts to form the

Question:

Why can’t we simply add together all of the separate profit and loss accounts to form the consolidated profit and loss account when the subsidiaries are partly owned and there are no intra-group dividends or unrealised profits on stock?

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

Step by Step Answer:

Related Book For book-img-for-question

Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

See More Books

Question Posted: Sep 10, 2023 06:06 AM

See More Questions

Why cant we simply add together all of the separate statements of profit or loss to form the consolidated statement of profit or loss when the subsidiaries are partly owned and there are no...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
+9.33 x 10 C +91 Find the net force on 92. 0.180 m +4.22 x 10 C +92 0.230 m- -8.42 x 10 C 93 F = force exerted on q2 by 91 F3 = force exerted on 92 by 93 F = 10.9 N F3 = 6.04 N Remember: Forces...
Which one of each of the following pairs of assets is most liquid? a. Microsoft stock or a traveler's check b. A 30-year bond or a six-month Treasury bill c. A certificate of deposit or a demand...
Rocky Mountain Depot just announced its EPS of $4.50. Retention ratio (b) = 0.6. The earnings are expected to grow at 10 percent for one year and then at 5 percent indefinitely. Given that Ke = 17%,...
Listed below are additional research questions and hypotheses from actual published articles. For each hypothesis, identify the independent and dependent variable. a. It is expected that achievement...
Cash Flow to Creditors The 2006 balance sheet of Marias Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2007 balance sheet showed long-term debt of $3.3 million. The 2007 income...
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of...
It is false that no A are B. Therefore, some A are B. Use the modified Venn diagram technique to determine if the following immediate inference forms are valid from the Boolean standpoint,...
Why was the 2 unrealised profit in the stock held by S Ltd added to the consolidated figure for cost of sales in Working 2?
The following information relates to the Brodick group of companies for the year to 30 April 20X7: Additional information: (a) The issued share capital of the group was as follows: Brodick plc:...
A short DNA sequence, which may be recognized by primase, is repeated many times throughout the E. coli chromosome. Researchers have hypothesized that primase may recognize this sequence as a site to...
Interstate Manufacturing is considering either overhauling an old machine or replacing it with a new machine. Information about the two alternatives follows. Management requires a 10% rate of return...
Payback, NPV, and MIRR Your division is considering two investment projects, each of which requires an up-front expenditure of $27 million. You estimate that the cost of capital is 12% and that the...
Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement are provided below, along with additional information. Current...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2025 are presented below. End of Year Beginning of Year Cash and cash...
Waterway Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 260 $29 $7,540...
sample proportion of adults who respond yes, is approximately normal, how many more adult Americans does the researcher need to sample if (a) 10% of all adult Americans support the changes? (b) 20%...
Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit....
A companys statement of financial position appears as follows: Required: (a) If 19,200 of the ordinary shares were purchased at par, there being no new issue of shares for the purpose, show the...
Why do you think companies issue loan notes rather than making a new share issue?
During the year to 30 September 2017, Kammer plc made a new offer of shares. The details of the offer were as follows: 1100,000 ordinary shares of 1 each were issued payable in instalments as...
customers. Data from the most recent period concerning these products appear below: Annual sales volume Unit selling price Variable expense per unit Contribution margin per unit Velcro 101,000 Metal...
Omega Corp. was contracted to construct a building for $1,400,000. The contract provided for progress payments. Omega's accounting year ends December 31. Work began under the contract on March 1,...
Based on the information in the graph, write the equations of line P and line Q in both slope- intercept form and point-slope form P -2 Q K y=2x-5 (4,3)

Why cant we simply add together all of the separate profit and loss accounts to form the

Question:

Step by Step Answer:

You need to deduct the minority i...View the full answer

Frank Woods Business Accounting Volume 2

Students also viewed these Business questions