Based on what we have learned in Chapter 1 and in prior accounting classes, plus searching the

FASB ASC Topic 810 on consolidation, answer

the following questions:

1). Explain what are protective nontrolling rights, and what are substantive participating

noncontrolling rights.

2) what noncontrolling rights overcome the presumption that all majority-owned investees

should be consolidated?

3). P Company purchases 70% of the voting rights of S company with the remaining 30%

noncontrolling interest held by S' former owners, who negotiated the following noncontrolling

rights:

a). Any new debt above $1 million must be approved by the 30% noncontrolling

shareholders.

b). any dividends or other cash distributions to owners in excess of customary

historical amounts must be approved by the 30% noncontrolling shareholders. According to the

FASB ASC, what are the issues in determining whether P should consolidate A or report the

investment under the equity method