标题: FSA - CHAPTER 23 - END OF CHAPTER QUESTION 12 [打印本页] 作者: PieMan 时间: 2011-7-13 16:15 标题: FSA - CHAPTER 23 - END OF CHAPTER QUESTION 12
Hello.
Does this seem right?
Question - Based on Gelblum's estimates, Zimt's net income in 2011 will most likely be:
a highest if zimt is deemed to have control of oxbow
b highest if zimt is deemed to have significant influence over oxbow
c independent of accounting method used for the investment in oxbow.
background: ifrs is used
my answer is a because that means the company is consolidated into the balance sheet. I said no to answer b because then partial consolidation is used. Answer c didn't make sense because of the fact that entires are different based on different methods. The book says c is correct.
Any help?作者: kingstongal 时间: 2011-7-13 16:15
but this is not a B/S question, it's NI.作者: Kapie 时间: 2011-7-13 16:15
NI is the same under all investment accounting methods bro作者: jarobi04 时间: 2011-7-13 16:15
You're not thinking about the additional depreciation expense and other expenses that result from owning 100% of the company versus 50%.作者: Sportsman 时间: 2011-7-13 16:15
Yes you are correct. Income statement entry for minority interest brings it down. Gonna be the same. Oooookkkkk never mind.作者: kkn006 时间: 2011-7-13 16:15
Remember also that there is no MI if the subsidiary is 100% owned. MI only occurs if less than 100% of the company is owned.
