| After studying this chapter, you should be able to: |
| LO1 |
Understand that complete ownership is not a prerequisite for the formation of a business combination.
|
| LO2 | Describe the valuation principles underlying the acquisition method of accounting for the noncontrolling interest. |
| LO3 | Allocate goodwill acquired in a business combination across the controlling and noncontrolling interests.
|
| LO4 | Understand the computation and allocation of consolidated net income in the presence of a noncontrolling interest.
|
| LO5 | Identify and calculate the four noncontrolling interest figures that must be included within the consolidation process and prepare a consolidation worksheet in the presence
of a noncontrolling interest.
|
| LO6 | Identify appropriate placements for the components of the noncontrolling interest in consolidated financial statements. |
| LO7 | Determine the effect on consolidated financial statements of a control premium paid by the parent.
|
| LO8 | Understand the impact on consolidated financial statements of a midyear acquisition. |
| LO9 | Understand the impact on consolidated financial statements when a step acquisition has taken place. |
| LO10 | Record the sale of a subsidiary (or a portion of its shares). |
