Consolidating joint ventures under gaap phone dating personals
* The consolidated income statement is essentially a modification of the parent's income statement with the revenues, expenses, gains, and losses of subsidiaries substituted for a single-line presentation of the parent's income from investment in the subsidiaries.* The multi-line substitutions for single lines in the parent's balance sheet and income statement are intended to make the parent's financial statements more informative about the parent's total ownership holdings, not to broaden the reporting entity, which continues to be the parent itself.* Whether and how to conform parent and subsidiary accounting practices and fiscal periods.The scope of the DM is limited to consolidating the financial statements of business corporations.However, paragraph 2 suggests that a controlling financial interest is usually conferred by owning a majority voting interest.Consequently, control versus ownership as the basis for consolidation remains unsettled today.Under this concept, the consolidated financial statements reflect those stockholders' interests in the parent itself, plus their undivided interests in the net assets of the parent's subsidiaries.
ACCOUNTING RESEARCH BULLETIN 51 Current accounting standards for consolidation are set forth primarily in Accounting Research Bulletin (ARB) 51, Consolidated Financial Statements, issued in 1959 by the Committee on Accounting Procedure. The purpose of consolidated statements is to present, primarily for the benefit of the shareholders and creditors of the parent company, the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single company with one or more branches or divisions.
Examples include: * How to measure a subsidiary's identifiable assets and liabilities at acquisition date. * What to do if an investee becomes a subsidiary through a series of purchases of small blocks of stock - a step acquisition.
* How to account for subsequent increases and decreases in a parent's proportionate interest in a subsidiary. * How to structure the information for the most meaningful financial- statement display.
* All of a subsidiary's assets and liabilities belong to the consolidated entity, not just the parent's portion.
* The consolidated entity's ownership equity is divided into: - Controlling interest (stockholders of the parent); and - One or more non-controlling (minority) interests in those subsidiaries less than wholly owned. Ownership is an indicator of control, but not a separate criterion.