F4M5

Question 1

When do you use NCI

Answer 1

when you do not have 100% ownership int he company

Question 2

where is NCI reported

Answer 2

consolidated equity

Question 3

Acquisition computation of NCI

Answer 3

FV of subsidiary
* NCI %
= NCI (in consolidated equity

Question 4

NCI moves like RE

Answer 4

+ Beg NCI
+ Income
- dividends
= End NCI

Question 5

Consolidated financial statements

Answer 5

external

Question 6

FV of subsidiary is equal to

Answer 6

acquisition cost + NCI @ Fv

Question 7

Acquisiton with goodwill

Answer 7

1. balance sheet adjust to fv
2. identifiable intangible assets to FV
3. GOodwill

Question 8

In process R&D consolidation

Answer 8

Expense

If once it is completed it is successful, amortize

If it is failure, impairment

Question 9

Goodwill calculation

Answer 9

FV of subsidiary - FV subsidiary assets

Question 10

Private COmpanies consolidation exception

Answer 10

may elect to not separately recognize if there is a noncompete agreement or customer related intangible assets

If they elect this option, they must amortize goodwill over 10 years or les

Question 11

Acquisition with gain

Answer 11

parent either acquired subsidiary at a large discount or parent paid less than FV

Question 12

Measurement period adjustments

Answer 12

when it is not known what FV is

cannot exceed a year

ends when improved information is available

adjust old assets or create new assets