Summary
Contents
Subject index
Consolidated Financial Reporting introduces and examines what is currently the most central and controversial area in financial reporting. In an innovative and distinctive way the author integrates concepts, techniques, controversies and current practice. Techniques are introduced within a framework which shows why they work and what the figures mean. Controversial issues are grounded within modern accounting theory and practice.
All core areas and relevant standards are covered including: acquisition and merger accounting; fair values at acquisition; goodwill; consolidated cash flow statements; reporting consolidated financial performance; foreign currency translation; segmental reporting; off-balance sheet financing; and related party transactions.
The book is designed so that readers with particular interests - for example in technical matters or concepts and standards - can easily find their way through clearly marked sections. Discussion and calculation reinforce each other - calculations illustrate controversies, and controversies and concepts illustrate techniques. Examples are carefully graduated and care is taken not to obscure principles with unnecessarily complex calculations. Materials are set into an international context.
The book is both rigorous and accessible. It is an extensive revision of and successor to the author's 1987 title Consolidated Financial Statements. Because of recent theoretical and institutional developments, an enormous amount of new material has been added and new teaching approaches to many areas included. There are many more worked examples and exercises as well as approachable discussions of ‘state-of-the-art’ advanced topics.
The solutions notes for each case are avilable on a disk for instructors who recommend the book for course use.
Business Combinations: Changes in Group Composition
Business Combinations: Changes in Group Composition
Most business combinations involve the purchase of an equity stake in other companies, rather than their individual assets, liabilities and goodwill, for reasons similar to those set out in the ‘branch versus subsidiary’ discussion in Chapter 1. In the parent's individual financial statements the business combination is treated as the purchase of an investment, and only in the consolidated financial statements are the assets and liabilities of all group members aggregated. Exceptions may occur if, for example, there is some doubt about the eventual size of liabilities of the target company, e.g. if there is an outstanding lawsuit, or if ease of immediate access to particular assets such as the target's cash or near ...
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