When a company sells equipment that had previously been remeasured to fair value under the revaluation model of IAS 16, it transfers the revaluation surplus from accumulated other comprehensive income directly to retained earnings. What adjustments must be made to accumulated other comprehensive income when preparing consolidated financial statements if the sale is from the parent to the subsidiary?
Answer to relevant Questions“There should never be a gain on an intercompany sale of equipment when the selling company uses the revaluation model under IAS 16 and the equipment is sold at fair value.” Is this statement true or false? Explain. Bakersfield Ball Boys Limited (BBB) operates a Canadian professional baseball club, the Bakersfield Ball Boys, that won the Canadian Baseball League title in October Year 10. BBB is 30% owned by Mr. Bill Griffin, ...Shown below are selected ledger accounts from the trial balance of a parent and its subsidiary as of December 31, Year 9. Additional Information • P Company purchased its 90% interest in S Company in Year 1, on the date ...The balance sheets of Forest Company and Garden Company are presented below as at December 31, Year 8. Additional Information • Forest acquired 90% of Garden for $207,900 on July 1, Year 1, and accounts for its investment ...A company’s net income for the year was $17,000. During the year, the company paid dividends on its non-cumulative preferred shares amounting to $12,000. Calculate the amount of the year’s net income that “belongs ...
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