Fully residential and one of the most beautiful anywhere, Kenyon's hilltop campus boasts buildings, a acre environmental center, hiking trails, and woods, all bordered by the Kokosing, one of Ohio's scenic rivers.
Kenyon is thankful for the thousands of alumni and parents who have already supported the College this year. Scientific Storytelling A science-writing initiative will empower Kenyon students to artfully articulate important scientific topics.
The Significance of String Professor of Anthropology Bruce Hardy makes headlines for his study on the cognitive abilities of Neanderthals. Mind of a Writer A senior English major talks with her advisor about his philosophy on creative writing and teaching.
You will be guided to the product download page immediately once you complete the payment. Toggle navigation. FAQ: How to download solutions testbank after payment? Add to Cart. Add to Cart. Package Info. Create Date November 11, Consolidated financial statements represent accounting information gathered from two or more separate companies.
This data, although accumulated individually by the organizations, is brought together or consolidated to describe the single economic entity created by the business combination. Companies that form a business combination will often retain their separate legal identities as well as their individual accounting systems. In such cases, internal financial data continues to be accumulated by each organization. Separate financial reports may be required for outside shareholders a noncontrolling interest , the government, debt holders, etc.
This information may also be utilized in corporate evaluations and other decision making. However, the business combination must periodically produce consolidated financial statements encompassing all of the companies within the single economic entity. The purpose of a worksheet is to organize and structure this process. The worksheet allows for a simulated consolidation to be carried out on a regular, periodic basis without affecting the financial records of the various component companies.
Several situations can occur in which the fair value of the 50, shares being issued might be difficult to ascertain.
Thus, a quoted figure at any specific point in time may not be an adequate or representative value for long-term accounting purposes. For combinations resulting in complete ownership, the acquisition method allocates the fair value of the consideration transferred to the separately recognized assets acquired and liabilities assumed based on their individual fair values.
The revenues and expenses both current and past of the parent are included within reported figures. However, the revenues and expenses of the subsidiary are consolidated from the date of the acquisition forward within the worksheet consolidation process. The operations of the subsidiary are only applicable to the business combination if earned subsequent to its creation.
In the vast majority of cases the assets acquired and liabilities assumed in a business combination are recorded at their fair values. If the fair value of the consideration transferred including any contingent consideration is less than the total net fair value assigned to the assets acquired and liabilities assumed, then an ordinary gain on bargain purchase is recognized for the difference.
Shares issued are recorded at fair value as if the stock had been sold and the money obtained used to acquire the subsidiary. The Common Stock account is recorded at the par value of these shares with any excess amount attributed to additional paid-in capital. B Consideration transferred fair value D TruData patented technology C TruData common stock before acquisition An intangible asset acquired in a business combination is recognized as an asset apart from goodwill if it arises from contractual or other legal rights regardless of whether those rights are transferable or separable from the acquired enterprise or from other rights and obligations.
If an intangible asset does not arise from contractual or other legal rights, it shall be recognized as an asset apart from goodwill only if it is separable, that is, it is capable of being separated or divided from the acquired enterprise and sold, transferred, licensed, rented, or exchanged regardless of whether there is an intent to do so.
An intangible asset that cannot be sold, transferred, licensed, rented, or exchanged individually is considered separable if it can be sold, transferred, licensed, rented, or exchanged with a related contract, asset, or liability. The stock issue cost is a reduction in additional paid-in capital. Professional Services Expense The figures earned by the subsidiary prior to the takeover are not included Consolidated Cash , , , Accounts receivable 1,, , 2,, Inventory 1,, , 1,, Investment in Kennedy 3,, S 2,, A , Buildings net 6,, 2,, A , 8,, Licensing agreements 3,, A , 2,, Goodwill , A , , Total assets 13,, 5,, 16,, Accounts payable , , , Long-term debt 3,, 2,, 6,, Common stock 3,, 1,, S 1,, 3,, Additional paid-in cap.
Prior to preparing a consolidation worksheet, Marshall records the three transactions that occurred to create the business combination. Investment in Tucker Add the two book values.
Add the two book values plus the fair value adjustment. Summation of the above individual figures. Add the two book values plus the debt incurred by the parent in acquiring the subsidiary. The parent's book value after stock issue to acquire the subsidiary. The parent's book value after the stock issue to acquire the subsidiary less the stock issue costs. Summation of the above figures. Prepare a consolidated balance sheet Consideration transferred at fair value All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education. Because this basis exceeds the amount paid, Allerton recognizes a gain on bargain purchase.