Distinguish between the cost and equity methods of accounting for investments in equity securities.
A consolidated statement of financial position reports the financial position of two or more legal entities just as if they were one reporting unit. Explain why all the individual items appearing on the separate statement of financial positions of each of the affiliated companies cannot be added together to arrive at a consolidated total for each item.
What purposes are served by reporting Unrealized Gains (Losses)—Equity in the equity section?
The Fair Value Adjustment account is a statement of financial position account. Identify the asset account it is related to. Explain how this account is increased and describe the procedure followed when its related asset account is disposed of.
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