Which method must be used if ASC 810-10-65 prohibits full consolidation of a 70% owned subsidiary?

Select one:

a. Equity method

b. The Liquidation value

c. Market value

d. The cost method

Subsequent to an acquisition, the parent company and consolidated financial statement amounts would not be the same for

Select one:

a. ending retained earnings.

b. investments in consolidated subsidiaries.

c. investments in unconsolidated subsidiaries.

d. capital stock.

Push-down accounting

Select one:

a. is the process of recording the effects of the purchase price assignment directly on the books of the subsidiary.

b. requires a subsidiary to use the same accounting principles as its parent company.

c. is required when the parent company uses the cost method to account for its investment in a subsidiary.

d. is required when the parent company uses the equity method to account for its investment in a subsidiary.

IFRS defines control as

Select one:

a. having a majority of the ownership interests entitled to elect management.

b. the power to direct the activities that impact economic performance, the obligation to absorb expected losses, and the right to receive expected residual returns.

c. the power to govern the entitys financial and operating policies as to obtain benefits from its activities.

d. the direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise.