Question 1

How and why were SPEs changed by FASB Interpretation No. 46 and Interpretation 46R?

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Question 2

What is "one-line consolidation," and when is it used?

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Question 3

What were special purpose entities (SPEs) and what were their advantages?

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Question 4

Respond to the following:
a. What are the six guidelines that SFAS No. 52 provides for determining the functional currency?
b. What were the findings of the FASB research report by Evan and Doupnik regarding these six criteria?

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a. What are the...

Question 5

Respond to the following:
a.
Explain the differences between the pooling of interests and purchase methods in terms of related assumptions and application.
b.
Why may companies not be indifferent to purchase and pooling accounting?

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a.
Explain the differences between...

Question 6

Summarize the provisions of SFAS No. 142 related to the definition of goodwill, impairment testing of goodwill, and the proper handling of goodwill in the event of the sale of an acquired subsidiary.

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Question 7

Discuss why the reporting of disaggregated data may be preferable to consolidated data.

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Question 8

What is meant by proportionate consolidation, and what are its advantages?

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Question 9

Respond to the following:
a. What does the term functional currency mean?
b. What is the accounting treatment if the foreign entity's currency in the functional currency?
c. What is the accounting treatment if the U.S. currency is the functional currency?

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a. What does the...

Question 10

What are the relevant circumstances that justify differential accounting for intercorporate equity investments?

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Quiz 18: Intercorporate Equity Investments