ividends declared by a subsidiary subsequent to the date of a business combination are displayed in a consolidated statement of retained earnings
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Dividends declared by a subsidiary subsequent to the date of a business combination are displayed in a consolidated statement of
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- An entity shall adjust the carrying amount of the dividend payable at the end of each reporting period and at the date of settlement with any changes in the carrying amount of the dividend payable recognized as component of other comprehensive income b. directly in retained earnings c. as gain or loss on property dividend d. as adjustment of share premiumIn consolidated financial statements, it is expected that: A. Retained earnings equals to the sum of controlling interest separate retained earnings and non-controlling interest separate retained earnings. B. Ordinary share equals to the sum of parent’s ordinary share and subsidiary’s ordinary share. C. Net income equals to the sum of the income distributed to the controlling interest and distributed to non-controlling interest. D. Dividends declared equals the sum of the total parent company’s declared dividends and the total subsidiary’s declared dividends.When a parent company uses the equity method to account for an investment in a subsidiary, why do both the parent’s Net Income and Retained Earnings account balances agree with the consolidated totals?
- Repurchased share transactions are reported on the: A) income statement as a part of continuing operations B) statement of changes in shareholders' equity C) income statement D) statement of retained earningswhat is the retained earnings of the combined entity immediately after the business combination?Answer with true or false. 1. The computation of consolidated retained earnings do not include non-controlling interest. 2. The investment in subsidiary account is recorded in the separate financial statement of parent entity. 3.
- Which of the following measures the portion of a corporations profit allocated to each outstanding share of common stock? A. retained earnings B. EPS C. EBITDA D. NOPATUnder the equity method of accounting for the operating results of a subsidiary, the dividends declared by the subsidiary to the parent company are accounted for by the parent company as A. Dividend revenue on the declaration date. B. A reduction of the Investment in Subsidiary account on the payment date. C. Dividend revenue on the payment date. D. A reduction of the Investment in Subsidiary account on the declaration date.Share dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liability
- How is non-controlling interest in the subsidiary’s net assets presented in the consolidated statement of financial position? a. Within equity but separately from the equity of the owners of the parents. b. Within equity as part of retained earnings. c. Any of these as a matter of accounting policy choice. d. As a mezzanine item between liabilities and equity.what amount will be reported for Shareholders’ Equity in the combined company’s statement of financial position immediately following the business combination?Consolidated Retained Earnings include: A. Consolidated Net income less any dividends declared by either the parent or subsidiary B. Consolidated Net income less any dividends declared by the parent only. C. The Parent’s net income less any dividends declared by the parent. D. The parent’s net income plus its share of subsidiary’s income less any dividends declared by either the parent or the subsidiary.