Homework SourseFor all acquired contingencies the acquirer should do all of
For all acquired contingencies, the acquirer should do all of the following except:
A. Provide documentation from the choirs attorney regarding pending lawsuit and loan guarantees
b. Provide a description of each contingency
C.Disclose the amount recognized at the acquisition date
D.Describe the estimated range of possible undiscounted outcomes of the contingency
Change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
A. Retroactive restatement as if the investor always had the equity method
B. Only a footnote disclosure
C. That the cumulative amount of the change be shown as a line item on the income statement, net of tax
D.That the change be accounted for as an unrealized gain included and other comprehensive income
For all acquired contingencies, the acquirer should do all of the following except:
A. Provide documentation from the choirs attorney regarding pending lawsuit and loan guarantees
b. Provide a description of each contingency
C.Disclose the amount recognized at the acquisition date
D.Describe the estimated range of possible undiscounted outcomes of the contingency
Change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
A. Retroactive restatement as if the investor always had the equity method
B. Only a footnote disclosure
C. That the cumulative amount of the change be shown as a line item on the income statement, net of tax
D.That the change be accounted for as an unrealized gain included and other comprehensive income
A. Provide documentation from the choirs attorney regarding pending lawsuit and loan guarantees
b. Provide a description of each contingency
C.Disclose the amount recognized at the acquisition date
D.Describe the estimated range of possible undiscounted outcomes of the contingency
Change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
A. Retroactive restatement as if the investor always had the equity method
B. Only a footnote disclosure
C. That the cumulative amount of the change be shown as a line item on the income statement, net of tax
D.That the change be accounted for as an unrealized gain included and other comprehensive income
Solution
Solving first question...
The correct option is :- A
Provide documentation from the choirs attorney regarding pending lawsuit and loan guarantees as the fair value of contingencies cannot be determined at the time of acquisitions.
