Description
Using the U.S. Securities and Exchange Commission’s EDGAR database, select a public company that has consolidated subsidiaries. select a company that begins with the letter R
In your discussion post, name the company and all of its subsidiaries. Then answer the following questions:
- What is the accounting valuation basis for consolidating assets and liabilities in the business combination?
- What percentage ownership does the parent have in one of the subsidiaries reported?
- Are there any outside interests that have been accounted for with this subsidiary?
- Is there any goodwill recorded? If yes, are there notes in the financial statement regarding a goodwill impairment loss? If so, how were they recorded? If not, how and when should any goodwill impairment loss be recorded?
Explanation & Answer
Attached.
Running Head: ROYAL BANK OF CANADA
Royal Bank of Canada
Institution Affiliation
Date:
1
ROYAL BANK OF CANADA
2
Businesses decide to consolidate due to various reasons ranging from the need to increase
market share, enhance customer service, and reduce the operating cost incurred by the
organization. As such, organizations combine assets, liabilities and financial items into a solid
unit to increase the capacity to expand their reach to customers as well as grow new business.
Numerous organizations indulge in consolidation when the owners consider mergers and
acquisition as the best alternatives to deal with the cutthroat competition in markets. Also, the
companies consolidate by co...
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