| After studying this chapter, you should be able to: |
| LO1 |
Recognize the complexities in preparing consolidated financial reports that emerge from the passage of time.
|
| LO2 | Identify and describe the various methods available to a parent company in order to maintain its investment in subsidiary account in its internal records. |
| LO3 | Understand that a parent's internal accounting method for its subsidiary investments has no effect on the resulting consolidated financial statements.
|
| LO4 | Prepare consolidated financial statements subsequent to acquisition when the parent has applied
in its internal records:
- The equity method.
- The initial value method.
- The partial equity method.
|
| LO5 | Discuss the rationale for the goodwill impairment testing approach. |
| LO6 | Describe the procedures for conducting a goodwill impairment test. |
| LO7 | Understand the accounting and reporting for contingent consideration subsequent to a business acquisition.
|
| LO8 | Understand in general the requirements of pushdown accounting and when its use is appropriate. |
