Advanced financial accounting PowerPoint presentation. In this presentation we will discuss the consolidation process when there is a preferred stock involved, get ready to account with advanced financial accounting. We’re talking about a situation here where we have preferred stock in the subsidiary and a consolidation process we’re doing the consolidation subsidiary has some preferred stock, you’ll recall that the characteristics of preferred stock generally means that in general, they have preference with regards to dividends and distribution of acids in liquidation over common shareholders. So therefore, when when a distribution happens if there’s going to be dividend distributions, for example, the preferred stockholders will typically get paid first, and we got to consider how that will be impacted or affected within our consolidation process.
Advanced financial accounting PowerPoint. In this presentation we will discuss a situation where there is a sale of inventory or transfer of inventory from parent to subsidiary, the subsidiary not having yet sold the inventory. So in that sense, we have an intercompany type of transfer. When we consider the parent and subsidiary as a whole with regard to a consolidation process, the parent sold to the subsidiary the inventory, the subsidiary still holding on to that inventory has not resold it externally at this point, get ready to account with advanced financial accounting. What we want to do now is think about the transaction on p side and then on SSIS, and then what the elimination entry will be. So there’s a couple ways you can think about this, you can kind of memorize what the elimination process will be what the elimination entry will be and put together worksheets to do that elimination process kind of by just routine by just filling out the worksheet. And then you also want to analyze the worksheet and think about it in detail in terms of what is actually happening.
Advanced financial accounting. In this presentation we’re going to discuss intercompany transactions. So typically we have a situation where where we have a parent subsidiary relationship or thinking about a consolidation type of process within it. And then we have those intercompany transactions between the companies that need to be consolidated between parent and subsidiary, get ready to account with advanced financial accounting intercompany transactions, the intercompany transactions we’ll be focusing in on here and working some practice problems in on will include the intercompany receivables and payables need to be eliminated for consolidated financial statements.
This presentation we’re going to take a look at the consolidation process for a 100% owned subsidiary. In other words, when we’re thinking about one company owning another company in advanced financial accounting, we’re usually looking at the situation and spending most of our time where we have some kind of consolidation process. So we want to Vin take the consolidation process and look at it in levels of complexity. So we’re going to start with a level of complexity, that’s going to be an easier setting where we will have 100% owned subsidiary, and then we’ll go from there and add more complications to it. Get ready to account with advanced financial accounting to ownership and control and prior presentations, we took a look at different methods based on different levels of ownership and control. We said in general, if we had zero to 20%, we use the carried value and then 20 percents kind of an arbitrary number, but if we’re over that amount, we’re really looking at the term of significant influence it for over the 20% from 20 to 50% then The assumption is that we would be using the equity method because the assumption would be if over 20% unless spoken otherwise, unless some unreal, some reason, otherwise, we would then have this significant influence and therefore be justified to use the equity method. And then if you’re over 51%, then you may have the consolidation. Now, when we think about these two methods that they carried value in the equity method, we can basically explain those as we go, you know, if you got anything from zero to 20%, then we could just basically say, yeah, then you fall into this category, let’s talk about the accounting in general.