答案和详解如下： Q6. Assume that the book value of a 50% stake in Hometown Homes is currently valued at $20 million. The $5 million difference between the book value and the acquisition price is assigned to depreciable assets, and will be amortized over five years. Under the consolidation method, which of the following scenarios would be the most accurate of Montserrat’s accounting for the acquisition? Montserrat should report 100% of its revenues and expenses,: A) 50% of Hometown’s revenues and expenses, and the depreciation adjustment, minus its minority share of consolidated income in Hometown. B) 100% of Hometown’s revenues and expenses and the depreciation adjustment. C) 100% of Hometown’s revenues and expenses, the depreciation adjustment, minus its minority share of consolidated income in Hometown. Correct answer is C) When an acquisition is made for a purchase that is greater than the entity’s book value, the difference is booked in an asset account which is then amortized over its assumed useful life. Since Montserrat would be acquiring a 50% stake in Hometown, it would account for the transaction using the consolidation method. Going forward, Montserrat would report 100% of Hometown’s revenues and expenses on its financials, as well as the depreciation adjustment for the excess purchase price. Then the minority share of Hometown’s income (the 50% stake not owned by Montserrat) would be subtracted. Q7. With regards to accounting for a variable interest entity (VIE) in accordance with FIN 46(R), which of the following statements is most accurate? A) A variable interest is a contractual, ownership, or other pecuniary interest in an entity that is based upon the fair value of the entity’s assets at inception. B) The primary beneficiary is the firm that receives the majority of the rewards associated with the VIE but not necessarily the majority of the risks. C) Firms must use factors other than voting control to determine whether a VIE should be consolidated. Correct answer is C) According to FIN 46(R), a VIE is an entity that meets any one of the following conditions: § Insufficient at-risk equity investment (usually less than 10%) § Shareholders lack decision-making rights § Shareholders don’t absorb losses § Shareholders don’t receive the expected residual returns Q8. Given the information regarding the possible formation of a special purpose entity (SPE) to acquire Hometown Homes, which of the following statements is most accurate with regards to FIN 46(R)? The newly formed SPE would: A) be considered a VIE and should be consolidated on Montserrat’s financial statements. B) not be considered a VIE but should be consolidated on Montserrat’s financial statements. C) be considered a VIE and should be consolidated on Hometown’s financial statements. Correct answer is A) In accordance with FIN 46(R), Montserrat’s initial 10% equity stake would not be considered sufficient to finance the newly formed entity’s operations, so it would be considered to be a VIE. If an entity is considered a VIE, then it must be consolidated by the primary beneficiary, which in this case is Montserrat. | 
发表于 2009-1-7 15:29
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