CPA Financial Accounting and Reporting (FAR) › Consolidated Financial Statements
On December 1, Year 1, the Fairfax Company signs a contract to receive 1 million Euros on January 31, Year 2 at a price of $1.1 million in a two month forward contract. On December 1, the spot rate for Euros is $1.1 in US dollars. Why would Fairfax enter into this contract?
Of the following characteristics, which would be used to determine the primary beneficiary of a variable interest entity under US GAAP?
The Robinson Company produces a balance sheet that shows a large figure in accumulated other comprehensive income within stockholder's equity. Which of the following could not have led to this figure?
Consolidated financial statements are typically prepared when one company has a controlling financial interest in another unless:
A US company is in the process of consolidating a subsidiary operating in China. The two companies have different functional currencies, so the Chinese accounts are being translated into US dollars. Some accounts are translated at historical rates while others are translated at the current rate as of the balance sheet date. Which of the following is true about the subsidiary's accounts?
Of the following is not a characteristic that is used to determine the primary beneficiary of a variable interest entity under US GAAP?