ACCT 5100 C243 Advanced Financial Accounting

Advanced Financial Accounting - C243 Ch1 - 4 cohort Assuming no impairment in value before transfer, assets transferred by Parent company to another entity it has created should be recorded by the newly created entity: a. Cost to the Parent Company b. Book Value of the parent's company books at the date of transfer c. Fair value at the date of transfer d. Fair value of consideration exchanged by the newly created entity - Correct AnswerCorrect: b. Book Value of the parent's company bo...

Advanced Financial Accounting - C243 complete study guide Special Purpose Entity (SPE) - Correct AnswerA financing vehicle that is not a substantive operating entity, usually created for one single purpose - can be a corporation, trust or partnership Spin-Off - Correct AnswerOccurs when the ownership of a newly created or existing subsidiary is distributed to the parent's stockholders surrendering any of their stock in the parent company. Therefore, the company divests itself of the sub...

C243 Ch. 8 Intercompany Indebtedness Complete study guide Indirect intercompany debt transfer - Correct AnswerInvolves the issuance of debt to an unrelated party and the subsequent purchase of the debt instrument by an affiliate of the issuer. Therefore, the parent company acquires the debt of the sub indirectly. Transfer at Par Value of Bond Sale to an Affiliate from Parent - Correct AnswerNeed to eliminate bonds payable by debiting and interest income by debiting and crediting Investment...