The Problems of Stage Acquisition Under the New Consolidation Accounting Standards

This article discusses some important components of how the accounting standards of consolidated financial statements have changed under FASB Nos. 141R and 160. Goodwill consists of both the parent and the noncontrolling interest. Noncontrolling interest includes goodwill and is treated as equity, rather than a liability. Consolidation is based on the fair value of the subsidiary's net assets. If the parent acquired the subsidiary in multiple stages, the accounting method may have to change from the cost method to the equity method. And, any gains or losses from the previous investment must be recognized. After the controlling interest is reached, consolidation is required and goodwill is established. Any disposition of an investment in a subsidiary is treated as an equity transaction. This article emphasizes the complexity of stage acquisition.

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Measuring goodwill and noncontrolling interest under the new consolidation accounting standards

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-05-2015-0055 ◽

2017 ◽

Vol 15 (2) ◽

pp. 198-207

Author(s):

James G.S. Yang ◽

Frank J. Aquilino

Keyword(s):

Financial Reporting ◽

Design Methodology ◽

Accounting Standards ◽

Financial Statements ◽

Consolidated Financial Statements ◽

Accounting Standard ◽

Content Type ◽

Net Assets ◽

Practical Implications

Purpose The accounting standards for consolidated financial statements have been updated recently. The change involves the measurement of goodwill and noncontrolling interest. Under the new accounting standards, goodwill consists of not only the parent company’s portion but also the noncontrolling interest’s share. The noncontrolling interest comprises both the subsidiary’s identifiable net assets and goodwill. In addition, it further changes the treatment of noncontrolling interest from liability to equity. The change indeed has far-reaching consequences on financial statements. This paper formulates an equation to measure goodwill and noncontrolling interest. It also provides some examples for illustrative purposes. The purpose of this paper is to update the financial reporting to the current standards. Design/methodology/approach New accounting standards under FASB #141R and 160. Findings New accounting standards in measuring goodwill and noncontrolling interest in financial reporting. Research limitations/implications The knowledge is useful for accountants and financial analysts. Practical implications Improve the quality of financial statements. Social implications Investors will be better informed. Originality/value This new accounting standard was not explored before.

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Revaluation as a Model of Subsequent Measurement of Property, Plant, and Equipment – Case of Croatia

10.15179/ces.23.1.3 ◽

2021 ◽

Vol 23 (1) ◽

pp. 63-95

Author(s):

Mirjana Hladika ◽

◽

Damir Gulin ◽

Ivana Bernat ◽

◽

...

Keyword(s):

Cost Model ◽

Pearson Correlation ◽

Accounting Standards ◽

Financial Statements ◽

Fair Value ◽

Descriptive Statistics ◽

International Accounting Standards ◽

Disclosure Requirements ◽

Subsequent Measurement ◽

The Cost

Accounting standards allow the application of two models for subsequent measurement of property, plant, and equipment, and those are the cost model and the revaluation model. The application of a certain model depends on the manager’s choice of accounting policy. The main goal of this paper is to investigate the application of the revaluation model for subsequent measurement of property, plant, and equipment in Croatian companies. Further goals are to examine how the fair value for revalued assets is determined, and what the level is of disclosed information about the determined fair value and the revaluation. The theoretical part of the paper analyzes different models for measurement of property, plant, and equipment, the issue of determining fair value, and disclosure requirements according to national and international accounting standards. The empirical part of the paper is conducted on 500 large and medium-sized Croatian companies from the service (utilities), production, and tourism sectors. Particular attention is placed on the notes to the financial statements of these companies. The research covers the period from 2014 to 2018. Collected data are analyzed by using descriptive statistics methods, point-biserial correlation, and Pearson correlation coefficient.

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The Reporting Entity in Private-Public Accounting Harmonisation. Is Control Enough for the Local Government Consolidated Financial Statements?

FINANCIAL REPORTING ◽

10.3280/fr2017-001001 ◽

2017 ◽

pp. 5-29 ◽

Cited By ~ 4

Author(s):

Cristian Carini ◽

Laura Rocca ◽

Claudio Teodori ◽

Monica Veneziani

Keyword(s):

Public Sector ◽

Local Government ◽

Accounting Standards ◽

Financial Statements ◽

Consolidated Financial Statements ◽

The Public ◽

Financial Accountability ◽

Public Sector Accounting ◽

Definition Of ◽

Reporting Entity

The European Commission initiated a discussion on the expediency of using the International Public Sector Accounting Standards (IPSAS), based on the IAS/IFRS, as a common base for harmonizing the public sector accounting systems of the member states. However, literature suggests that accounting is not neutral with respect to the economic, social and political dimensions. In the perspective of evolution of the accounting regulation outlined, balanced between accountability, with the need to represent phenomena for reporting pur-poses, and decisionmaking issues, which concentrates on the quantitative importance of the values, the paper aims to analyse the effects of the application of different criteria for the definition of the reporting entity of the local government consolidated financial statements (CFS). The Italian PCA 4/4, the test of control and the financial accountability approaches are examined. The evidence that emerged from the case studies examined identifies several criticalities in the Italian PCA 4/4 and support the thesis that the financial accountability approach is more effective in providing a complete representation of the public resources entrusted to and managed by the group, whereas the control approach better approximates quantification of the group results in terms of central government surveillance. The analysis highlights the importance of the post implementation review period and the opportunity to contextualize the adoption of the consolidated financial statement in the broader spectrum of the accounting harmonization process, participating in the process of definition of the European Public Sector Accounting Standards (EPSAS).

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MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN - GOODWIL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

Jurnal Riset Akuntansi Dan Bisnis Airlangga ◽

10.31093/jraba.v2i2.48 ◽

2017 ◽

Vol 2 (2) ◽

Author(s):

Deddy Kurniawansyah

Keyword(s):

Research Method ◽

Intangible Assets ◽

Accounting Standards ◽

Financial Statements ◽

Fair Value ◽

Financial Accounting ◽

International Accounting Standards ◽

Fair Value Accounting ◽

Literature Study ◽

Accounting Standard

This literature study explains and describe the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are in some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, thetreatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature, especially accounting treatment of goodwill as intangible assets in the financial statements of various countries such as Indonesia, America and the England.Keyword :Goodwiil, Impairment, Financial Accounting Standard

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Adoption of IFRS in Brazil and the Consequences to Accounting Education

Issues in Accounting Education ◽

10.2308/iace-50373 ◽

2012 ◽

Vol 28 (2) ◽

pp. 235-242 ◽

Cited By ~ 17

Author(s):

L. Nelson Carvalho ◽

Bruno M. Salotti

Keyword(s):

Income Tax ◽

Rare Case ◽

Accounting Standards ◽

Financial Statements ◽

Company Law ◽

Accounting Education ◽

Consolidated Financial Statements ◽

Tax Legislation ◽

The Individual ◽

Safe Path

ABSTRACT: Brazil is a rare case of a complete adoption of IFRS, not only for consolidated financial statements, but also for the individual ones. Very few countries dared to converge their accounting standards toward IFRS in the company-only financial statements, probably afraid of the tax or dividends impact. Brazil made the ambitious move, changing the Company law and altering the income tax legislation in such a way that a safe path was built to bridge from the old BR GAAP standards to IFRS.

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Scope Changes Impact on Book Performance of Consolidated Financial Statements

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.380-384.4494 ◽

2013 ◽

Vol 380-384 ◽

pp. 4494-4499

Author(s):

Lian Feng Xia

Keyword(s):

Accounting Standards ◽

Financial Statements ◽

Listed Companies ◽

Consolidated Financial Statements ◽

Financial Report ◽

Average Value ◽

Related Data ◽

Public Company ◽

Basic Work ◽

Substantial Control

Currently, listed companies in our country generally draw up consolidated financial statements according to the new accounting standards requirements, and release consolidated financial statement to investors and relevant financial statements users so as to public company financial information. Consolidated financial statements can comprehensively reflect the financial position and operating results of listed companies. The key basic work of consolidated financial statements preparation is to reasonably determine the consolidation range of consolidated financial statements. Although the current new accounting standards have stipulated consolidation range, the new accounting standards has not specified the substantial control of concrete measurement method problem. So this paper takes one listed companys financial report and related data from 2007 to 2011 as data sources,selects listed enterprises with no clear merger reason as research object. Multivariate linear regression model is adopted to analyze the influence of merge scope change on book performance. The results show that the consolidated range change will change enterprises book report data,and the influence average value of book achievement is about 10.72%.

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Fair value in the measurement of assets and liabilities of selected banks

Zeszyty Teoretyczne Rachunkowości ◽

10.5604/01.3001.0014.2467 ◽

2020 ◽

Vol 107 (163) ◽

pp. 119-136

Author(s):

Jerzy Gierusz ◽

Karolina Dąbrowska

Keyword(s):

Stock Exchange ◽

Financial Statements ◽

Fair Value ◽

Consolidated Financial Statements ◽

Warsaw Stock Exchange ◽

The Subject ◽

The One ◽

Subjective Estimates ◽

The Impact ◽

Financial Result

The main purpose of this article is to determine the impact of changes in the fair value of assets and liabilities on the overall net result of selected banks listed on the Warsaw Stock Exchange. The research covered the consolidated financial statements of five banks, for the years 2014-2018. Methods of analyzing the literature on the subject, financial statements, and legal acts, including selected IFRS, were used. It has been shown that, on the one hand, fair value revaluations have a significant impact on the financial result of the described entities; on the other hand, the fair value in these entities is determined mainly at the 1st level of the hierarchy. This means that the basis for determining the fair value is observable prices on the market, and that the impact of subjective estimates on the financial result is small.

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ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ЗА ПРИНЦИПОМ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

TIME DESCRIPTION OF ECONOMIC REFORMS ◽

10.32620/cher.2021.1.09 ◽

2021 ◽

pp. 74-81

Author(s):

Олена Сергіївна Юрченко

Keyword(s):

Financial Reporting ◽

Information Needs ◽

Accounting Standards ◽

Financial Statements ◽

Fair Value ◽

The Real ◽

Real Value ◽

The Impact ◽

Accounting Policy

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

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An Evaluation Of The Implementation Of Fair Value Accounting: Impact On Financial Reporting

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i1.934 ◽

2011 ◽

Vol 9 (1) ◽

Author(s):

Karen T. Cascini ◽

Alan DelFavero

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Fair Value ◽

The United States ◽

Financial Accounting ◽

Financial Assets ◽

Financial Accounting Standards Board ◽

Continuous Change ◽

Fair Value Accounting ◽

The Cost

The accounting industry is in a state of continuous change.  In the United States, the historical cost principle has traditionally been the foundation of accounting.  Until recently, assets and liabilities have been required to be recorded at their acquisition prices, with the exception of designated financial assets and financial liabilities.  However, the Financial Accounting Standards Board (FASB) has now created accounting standards that are distant from the cost principle.  Statement of Financial Accounting Standards No. 157: Fair Value Measurements, issued in September 2006 (FAS157, now codified as ASC 820) and Statement of Financial Accounting Standards No. 159: The Fair Value Option for Financial Assets and Financial Liabilities, created in February 2007 (FAS159, now ASC 825-10-25), significantly increases the viability of fair value accounting. The purpose of this paper is to illustrate the benefits and pitfalls of fair value and the corresponding affects on various stakeholders.

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Adaptasi Laporan Keuangan Pada Entitas Nonlaba Berdasarkan Isak 35 (Studi Kasus pada Universitas Ibrahimy Sukorejo Situbondo)

JURNAL AKUNTANSI DAN PAJAK ◽

10.29040/jap.v21i02.1388 ◽

2021 ◽

Vol 21 (02) ◽

Author(s):

Imro'atun Shoimah ◽

Siti Maria Wardayati ◽

Yosefa Sayekti

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Financial Reports ◽

Non Profit ◽

Net Assets ◽

Double Entry ◽

The University

This research aims to analyze and adapt the financial reporting of non-profit entities based on Interpretation of Financial Accounting Standards 35 (ISAK 35): concerning the Presentation of Financial Statements for Non-Profit Oriented Entities. Namely the interpretation of the Statement of Financial Accounting Standards 1 (PSAK 1): concerning the Presentation of Financial Statements. For other accounting provisions for non-profit entities, it refers to the Financial Accounting Standards for Entities without Public Accountability (SAK ETAP) and Sharia Accounting Standards (SAS). Qualitative research was conducted with a case study at the University of Ibrahimy Sukorejo Situbondo. The results of this study, it is necessary to change the accrual basis recording method with the double entry system, preparation of adjusting journals to then compilation of financial position reports, comprehensive income reports, changes in net assets reports, cash flow reports and notes on financial reports based on ISAK 35. Adaptation of university financial reports Ibrahimy based on ISAK 35 is carried out by adjusting the required account posts by Ibrahimy University with the accounts stated in the Interpretation of Financial Accounting Standards 35 (ISAK 35)

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