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Consolidated Financial Statements Guide

This document summarizes key topics in consolidated financial statements including accounting for impairment of goodwill, changes in ownership interests that result in loss of control, and changes in ownership interests that do not result in loss of control. It outlines that impairment of goodwill is accounted for in consolidated financial statements. For changes in ownership without loss of control, equity transactions are used, recognizing no gain or loss. Changes resulting in loss of control use the deconsolidation method or step acquisition method. Practice problems are provided to apply these concepts.

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Erwin Labayog Medina
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159 views9 pages

Consolidated Financial Statements Guide

This document summarizes key topics in consolidated financial statements including accounting for impairment of goodwill, changes in ownership interests that result in loss of control, and changes in ownership interests that do not result in loss of control. It outlines that impairment of goodwill is accounted for in consolidated financial statements. For changes in ownership without loss of control, equity transactions are used, recognizing no gain or loss. Changes resulting in loss of control use the deconsolidation method or step acquisition method. Practice problems are provided to apply these concepts.

Uploaded by

Erwin Labayog Medina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

(Advanced Financial

Accounting and Reporting


Part 2)
LECTURE AID

2017

ZEUS VERNON B. MILLAN

AFAR PART 2: Zeus Vernon B. Millan


Chapter 19 CONSOLIDATED FS (Part 3)

 
Learning Objectives

• Account for the effect of impairment of


goodwill on the consolidated financial
statements.
• Determine the effects of changes in
ownership interests that (a) result in loss
of control and (b) does not result in loss of
control.
AFAR PART 2: Zeus Vernon B. Millan
Impairment of goodwill

AFAR PART 2: Zeus Vernon B. Millan


Changes in ownership interest not resulting to loss
of control

• If the parent’s ownership interest in a subsidiary changes


but does not result to loss of control, the change is
accounted for as an equity transaction.
• NO GAIN OR LOSS is recognized from the transaction.

AFAR PART 2: Zeus Vernon B. Millan


Loss of control

AFAR PART 2: Zeus Vernon B. Millan


Loss of control (Continuation)

OR

AFAR PART 2: Zeus Vernon B. Millan


• (APPLICATIONS: PROBLEM 18-2: #’s 1 – 6)

AFAR PART 2: Zeus Vernon B. Millan


OPEN FORUM
QUESTIONS????
REACTIONS!!!!!

AFAR PART 2: Zeus Vernon B. Millan


IFA PART 1A: Zeus Vernon B. Millan
END

AFAR PART 2: Zeus Vernon B. Millan

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