Under equity reporting, why are unrealized profits from downstream sales deducted from the investor’s equity in the earnings of the investee instead of from the parent’s own earnings?
Answer to relevant QuestionsAlright Beverages Ltd. (ABL) was federally incorporated in 19X0. In the initial years, the company produced a cranberry drink for sale at sporting and entertainment events in eastern Canada. In 19X7, operations were expanded ...Parent Corp. owns 70% of the voting shares of Sub Ltd. During 20X4, Sub Ltd. sold inventory costing $ 640,000 to Parent Corp. for $ 800,000. At December 31, 20X4, Parent Corp. still had $ 300,000 of these goods in its ...At the 20X5 annual meeting for Jasmine’s shareholders, Curry nominated seven directors for Jasmine’s 12- person board of directors. After some negotiation, five of Curry’s nominees were accepted onto the board. During ...On January 1, 19X9, Apache Company purchased 80% of the outstanding voting shares of Navaho Company for $ 300,000. Navaho’s assets and liabilities all had fair values that were equal to their carrying values. The $ 80,000 ...What data must be reported for each geographic segment? How do these data differ from the data reported for industry segments?
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