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Introduction to Accounting for Intercorporate Investments
內容大綱
This technical note introduces the key concepts and methodologies of accounting for intercorporate investments, which occur when one company acquires the equity or debt of another company. The accounting basics are discussed for three investment categories: (1) passive investments, where little or no influence is present; (2) investments in associates, where significant influence is present and (3) investments in subsidiaries, where control is present. The note addresses the equity method of accounting for associates. For subsidiaries, the note discusses the notion of control, the allocation of a purchase price and recognition of goodwill, consolidation and goodwill impairment.
學習目標
This technical note is designed for use in an introductory class in intercorporate investments at the undergraduate or graduate level. Students are introduced to key concepts that will increase their understanding of consolidated financial statements. The note focuses on International Financial Reporting Standards, but covers the key differences under Accounting Standards for Private Enterprises.