FREE Trial

Why are financial statements consolidated when control over a subsidiary is achieved?

Question:

Why are financial statements consolidated when control over a subsidiary is achieved?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 75% (4 reviews)

Consolidated combined financial statements are prepared when a parent com…View the full answer


answer-question
Answered By
tutor-profile-image
ANDREW KIPRUTO
Academic Writing Expert I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments. I can help you in the following areas: Networking - Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM - Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP - Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more - Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo Always available for new projects! Contact me for any inquiries
4.30+ 1+ Reviews 10+ Question Solved
Related Book For  answer-question
Financial Accounting Tools for Business Decision Making

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: June 15, 2017 09:26:58
See More Questions

Students also viewed these Cost Accounting questions

Q:
1. A 75 percent-owned subsidiary should not be consolidated when: a. Its operations are dissimilar from those of the parent company b. Control of the subsidiary does not lie with the parent company...
A:
1 b Control of the subsidiary does not lie with the paren......
Q:
1. Under GAAP, a parent company should exclude a subsidiary from consolidation if: a. I t measures income from the subsidiary under the equity method b. T he subsidiary is in a regulated industry c....
A:
1 d T he parent and the subsidiary were under common con......
Q:
Alpha has owned 75% of the equity shares of Beta since the incorporation of Beta. Therefore, Alpha has prepared consolidated financial statements for some years. On 1 July 20X6 Alpha purchased 40% of...
A:
a i Consolidated statement of comprehensive income for the year ended 30 September 20X6 000 Revenue W1 230 000 Cost of sales balancing figure 168 200 Gross profit W2 61 800 Distribution costs 7 000 6......
Q:
Let Find x , y , xy , and yx , and state the domain for each partial derivative. f(x, y) = [y, y = 0 1-y, y < 0.
A:
To find the partial derivatives x y xy and yx of the given function x y y 3 y 0 y 2 y 0 we need to c......
Q:
Elizabeth and Laurie operate a beauty salon as partners who share profits and losses equally. The success of their business has exceeded their expectations; the salon is operating quite profitably....
A:
a The stakeholders in this situation are Elizabeth and Laurie b The consequences of Elizabeths actio......
Q:
Neutron bombardment of 23 Na produces an isotope that is a emitter. After emission, the final product is (a) 24 Na; (b) 24 Mg; (c) 23 Ar; (d) 24 Ar; (e) None of these.
A:
The correct answer is d 24Ar When a neutron is captured by a sodium 23 nucle......
Q:
Distances to local galaxies are determined by measuring the brightness of stars, called Cepheid variables, that can be observed individually and that have absolute brightnesses at a standard distance...
A:
The measured brightness of......
Q:
Flex-Em began business in July 2013. The firm makes an exercise machine for home and gym use. Following are data taken from the firms accounting records that pertain to its first month of operations....
A:
a 1 040 000 5 200 200 units sold b Flex Em Schedule of Cos......
Q:
A sphygmomanometer is a device used to measure blood pressure, typically consisting of an inflatable cuff and a manometer used to measure air pressure in the cuff. In a mercury sphygmomanometer,...
A:
Click to View...
Q:
# Create a list with the names of your group members as string literals. It should look similar to example_listl. group members = [] # YOU FILL THIS IN print("My group members are: ") print...
A:
Here s the corrected code with instructions Create a list with the names of your group members as string literals group members John Sara David Emily......
Q:
Why is the equity method used when significant influence exists?
A:
When an investor exercises significant influence over its associate it is in a positi......
Q:
When an investment is accounted for at fair value, how is that value determined? How does this value differ from the net realizable value used when accounting for inventories or accounts receivable?
A:
For most debt and equity investments their fair value is determin......
Q:
The Jacobs Chemical Company wants to estimate the mean time (minutes) required to mix a batch of material on machines produced by three different manufacturers. To limit the cost of testing, four...
A:
a The dummy variables are defined as follows D1 D2 Mfg 0 0 1 1......
Q:
A Very British Renaissance: Episode 1 --... MORE VIDEO 15th century left the Middle Ages behind and created 0:27/ 58:50 8 Watch later Share YouTube Before beginning this Art Journal, be sure to view...
A:
1 Artwork Segments Making Strong Impressions While watching A Very British Renaissance several artworks and segments left a lasting impression Hans Holbein s Portraits The detailed and realistic portr......
Q:
Consider a random variate S3 = {0, 1,2,3,4} with probability mass function p(0) = 0.11,p(1) = 0.23, p (2) = 0.34, p(3) = 0.22, p(4) = 0.10. Demonstrate Marsagilla's table based algorithm to generate...
A:
Objective To demonstrate Marsglia s table based algorithm to generate random variates Solution Marsg......
Q:
Emergency responders for radioactive material incidents normally use the inverse square law of radiation to estimate the separation distance from the radioactive source. If a source has an intensity...
A:
Assumptions The radioactive source is a point source The inverse square law of radiation is applicab......
Q:
Use the information provided below to prepare the Performance report indicating original budget, actual budget, flexible budget and variances. INFORMATION Robex Ltd manufactures a single product. It...
A:
SOL The flexible budget figures are computed as follows sales 11000 1280000 8000 17600......
Q:
Special occasion speech Andy Griffith is an Actor and TV program producer I need his award winning Speech at Goodwill. I need his acceptance speech on "People's Choice Award for Favorite Actor in a...
A:
Ladies and gentlemen thank you for this tremendous honor I am deeply touched by your support and app......
Q:
How can an energy producer use derivative markets to hedge risks?
A:
The energy producer faces quantity......
Q:
Draw the appropriate control flow graph of the given pseudocode.Make sure to only use one number for blocks of code which are all sequential and when the first line is executed, all of those lines...
A:
Click to View...
Q:
Moosonee Ltd. was incorporated on January 5, 2012, and is authorized to issue an unlimited number of preferred and common shares. The company had the following share transactions in its first month...
A:
a Jan 6 Cash 300 000 Common Shares......
Q:
Remmers Corporation, a publicly traded company, was organized on January 1, 2012. It is authorized to issue an unlimited number of no par value $3 noncumulative preferred shares and an unlimited...
A:
a Transaction entries Jan 10 Cash 100 000 2 200 000 Common Shares 200 000 Mar 1 Cash 10 000 52 520 0......
Q:
The following summary of the earnings per share (in U.S. $), price-earnings (P-E), payout, and dividend yield ratios is available for five years ended December 31 for Barrick Gold Corporation:...
A:
a Although profits declined in 2008 it is likely that the dollar amount of dividends was unchanged Comparing a fixed dividend to a lower profit amount......
Artificial Intelligence And Generative Ai For Beginners A Comprehensive Guide To The Ultimate Journey Into The Future Of Creativity And Technology 1st Edition - ISBN: B0CFZQ9PV8 - Free Book