International Finance and Accounting Handbook

Possesses a large minority voting interest that produces a majority of the votes typically cast in the election of a corporatio ...

Consolidation is required under Article 1 of the Directive when any of the follow- ing circumstances apply: The investor corpor ...

Furthermore, consolidation may be required by individual member states where there is a shareholding and a dominant influence or ...

2.A subsidiary should be excluded from consolidation if a. Control is intended to be temporary because the subsidiary is acquire ...

the use of the equity method and the issuance of separate financial statements of the nonconsolidated subsidiaries is more meani ...

Minority interest in the subsidiary reflects the minority interest’s share of the book value of the stockholders’ equity. Minor ...

dated working papers and are not recorded on the books of the subsidiary. If separate financial statements are issued by the sub ...

purchase accounting the acquisition of a company is no different than the acquisition of any other asset at its fair value. It i ...

18 • 16 CONSOLIDATED FINANCIAL STATEMENTS AND BUSINESS COMBINATIONS Assume that the Packer Corp. acquires Summit Corp. on Decemb ...

“Business Combinations,” and amends or supersedes a number of interpretations of APB No. 16. Statement No. 141 eliminates the po ...

circumstances shall be considered.” Some of these considerations are: Consideration should be given to the relative voting righ ...

the combining enterprises combine control over the whole, or effectively the whole, of their respective net assets and operation ...

the constituent entities are of such relatively the same size that the acquiring and ac- quired entities cannot be distinguished ...

19 • 1 CHAPTER 19 FAS 133: ACCOUNTING FOR DERIVATIVE INSTRUMENTS Jeffrey B. Wallace Greenwich Treasury Advisors LLC CONTENTS 19. ...

19.2 HISTORICAL BACKGROUND. Prior to FAS 133, U.S. generally accepted ac- counting principles (GAAP) on derivatives consisted of ...

With continued guidance from the DIG, the FASB has published 175 “FAS 133 Implementation Issues.” These implementation issues, c ...

Changes in the ineffective and excluded portions are always recognized imme- diately in earnings, regardless of the type of hedg ...

Termination risk, that is, the likelihood that the hedge will fail to be highly ef- fective P&L ineffectiveness risk, resul ...

There are also some other important exceptions listed in Paragraph 11 involving derivative contracts of the company’s own stock ...

In total, there are five different accounting treatments, depending on how the hedge is terminated and what kind of hedge it is: ...