tailieunhanh - Lecture Advanced accounting (12/e): Chapter 5 - Joe B. Hoyle, Thomas F. Schaefer, Timothy S. Doupnik

Chapter 5 - Consolidated financial statements – Intra-entity asset transactions. Intra-entity asset transactions take several forms. In particular, inventory transfers are especially prevalent. However, the sale of land and depreciable assets also can occur between the parties within a combination. This chapter examines the consolidation procedures for each of these different types of intra-entity asset transfers. | Chapter Five Consolidated Financial Statements - Intra-Entity Asset Transactions Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Intra-entity Transactions When companies affiliated through common control engage in intra-entity inventory transfers, consolidation procedures are required to eliminate sales and purchases balances. Transactions between a parent and subsidiary are considered “internal” transactions of a single entity. Effects of intra-entity transactions should be eliminated from the consolidated financial statements. Consolidated statements must reflect only transactions with outside parties. LO 1 5- 2 Intra-entity Transactions When companies affiliated through common control engage in intra-entity inventory transfers, consolidation procedures are required to eliminate sales and purchases balances. Transactions between a parent and subsidiary are considered “internal” transactions of a single entity. Effects of intra-entity transactions should be eliminated from the consolidated financial statements. Consolidated statements must reflect only transactions with outside parties. The total recorded amounts are deleted. Sales and Purchases- Intra-entity ENTRY TI (Transferred Inventory) Eliminate all intra-entity sales/purchases of inventory by eliminating the sales price of the transfer – which one company records as sales, and the other records as cost of goods sold. LO 2 5- 3 Sales and Purchases- Intra-entity ENTRY TI (Transferred Inventory) Eliminate all intra-entity sales/purchases of inventory by eliminating the sales price of the transfer – which one company records as sales, and the other records as cost of goods sold. Note: The consolidated company has earned the profit on any portion of the intra-entity transaction that was sold to unrelated parties and does not need to make an adjustment for the sold items for consolidation purposes. Unrealized Gross Profit – Intra-entity ENTRY G (Gross Profit) . | Chapter Five Consolidated Financial Statements - Intra-Entity Asset Transactions Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Intra-entity Transactions When companies affiliated through common control engage in intra-entity inventory transfers, consolidation procedures are required to eliminate sales and purchases balances. Transactions between a parent and subsidiary are considered “internal” transactions of a single entity. Effects of intra-entity transactions should be eliminated from the consolidated financial statements. Consolidated statements must reflect only transactions with outside parties. LO 1 5- 2 Intra-entity Transactions When companies affiliated through common control engage in intra-entity inventory transfers, consolidation procedures are required to eliminate sales and purchases balances. Transactions between a parent and subsidiary are considered “internal” transactions of a single entity. Effects of intra-entity .

• Kế toán - Kiểm toán
• Advanced accounting
• Lecture Advanced accounting
• Advanced financial accounting
• Financial statements
• Accounting valuation
• Intra entity asset transactions
• Equity method of accounting
• International accounting diversity
• Accounting for legal reorganizations
• Accounting for state
• Accounting for leases
• Accounting for estates
• Investment accounting
• Consolidation of financial information
• Consolidated financial statements
• Variable interest entities
• Income taxes
• Interim reporting
• Foreign currency transactions
• Foreign currency financial statements
• Exchange commission
• Partnership advantages
• Statement of liquidation