| After studying this chapter, you should be able to: | |
| LO1 | Describe a variable interest entity, a primary beneficiary, and the factors used to decide when a variable interest entity is subject to consolidation. |
| LO2 | Understand the consolidation procedures to eliminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one company acquires an affiliate's debt instrument from an outside party. |
| LO3 | Understand that subsidiary preferred stocks not owned by the parent are a component of the noncontrolling interest and are initially valued at acquisition-date fair value. |
| LO4 | Prepare a consolidated statement of cash flows. |
| LO5 | Compute basic and diluted earnings per share for a business combination. |
| LO6 | Understand the accounting for subsidiary stock transactions that impact the underlying value recorded within the parent's Investment account and the consolidated financial statements. |