September 2023 So far our discussion and focus has been on business combinations where 100 of another company has been acquired In
2024 Advanced Accounting Assignment Help
So far our discussion and focus has been on business combinations where 100 of another company has been acquired In 2023
So far our discussion and focus has been on business combinations where 100% of another company has been acquired. In reality, complete ownership does not always take place. When a company does not acquire 100%, there is a noncontrolling interest (NCI) is held by another entity involved. The NCI can pose several reporting issues for accountants such as how to value the subsidiary’s accounts at consolidation and how to account for the NCI. SFAS 160 is a new FASB requirement related to consolidations involving a noncontrolling interest. Discuss how SFAS 160 changed the treatment of noncontrolling interest in business combinations. Also, in your opinion, which treatment of noncontrolling interest presents the most conservative approach and why. In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position on the questions or comments. Grading Criteria Discuss how SFAS 160 changed the treatment of noncontrolling interest in business combinations. Also, in your opinion, which treatment of noncontrolling interest presents the most conservative approach and why.