Please help with Accounting question. Thanks

Accounting
Tutor: None Selected Time limit: 1 Day

Must be 100% original work and make sense.

"Consolidated Financial Statements – Intra-Entity Asset Transactions"Suggest one (1) method of accounting for the income effects on the non-controlling interest that you consider most appropriate. Provide a rationale for your response.

Aug 1st, 2015

Thank you for the opportunity to help you with your question!

The  method of accounting for the income effects on the non-controlling interest that I consider most appropriate is the Equity method.

This is because the accounting for non controlling interests is built upon economic entity concept of consolidated financial statements.

As per the economic entity concept, all residual interest holders in a business possess an equity interest in the consolidated business. This applies even if the concerned stakeholders have a residual interest in a subsidiary of a parent company. Hence, a non controlling interest is displayed in the consolidated financial statement as a separate part of equity.

Similarly the controlling and noncontrolling interests are separately shown on the consolidated comprehensive income statement.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 1st, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Aug 1st, 2015
...
Aug 1st, 2015
Mar 24th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer