高级财务会计（英文版第13版）课件 第2章 长期股权投资-投资方的会计处理与列报

FundamentalsofMultinationalFinanceThirteenthEditionChapter2StockInvestments–InvestorAccountingandReportingCopyright©2018,2015,2012PearsonEducation,Inc.AllRightsReservedStockInvestments:Objectives2.1

Recognizeinvestors'varyinglevelsofinfluenceorcontrol,basedonthelevelofstockownership.2.2Understandhowaccountingadjuststoreflecttheeconomicsunderlyingvaryinglevelsofinvestorinfluence.2.3

Identifyfactorsbeyondstockownershipthataffectaninvestor’sabilitytoexertinfluenceorcontroloveraninvestee.2.4

Applythefairvalue/costandequitymethodsofaccountingforstockinvestments.2.5

Applytheequitymethodtostockinvestments.2.6Learnhowtotestgoodwillforimpairment.LevelsofInfluenceorControlStockInvestments–InvestorAccountingandReportingLevelsofInfluenceConsolidatedfinancialstatementsFairvalue(cost)methodEquitymethod<20%presumeslackofsignificantinfluence➔fairvalue(cost)method20%to50%presumessignificantinfluence➔equitymethod>50%presumescontrol➔consolidatedfinancialstatementsAccountingReflectsEconomicsStockInvestments–InvestorAccountingandReportingAccountingfortheInvestmentDegreeofinfluenceInvestment'scarryingvalueInvestmentincomeLackof

significantinfluenceFairvalue(cost,ifnonmarketable)DividendsdeclaredSignificantinfluenceOriginalcostadjustedtoreflectperiodicearningsanddividends,e.g.,aproportionateshareofinvestee'snetassetsProportionateshareofinvestee'speriodicearnings**TheinvestorcouldmanipulateitsowninvestmentincomeifincomeismeasuredbydividendsSignificantInfluence20%to50%votingstockownershipisapresumptionofsignificantinfluence.Usetheequitymethod.Don'tuseequitymethodifthereisalackofsignificantinfluence.Oppositionbyinvestee,Surrenderofsignificantshareholderrights,Concentrationofmajorityownership,Lackofinformationforequitymethod,andFailuretoobtainboardrepresentationControlMorethan50%votingstockownershipispresumptiveevidenceofcontrol.Prepareconsolidatedfinancialstatements.Don'tconsolidateiftheparentlackscontrolLegalreorganizationorbankruptcySevereforeignrestrictionsFactorsBeyondStockOwnershipthatAffectControlOveranInvesteeStockInvestments–InvestorAccountingandReportingIndicatorsofInabilitytoExertInfluenceOppositionbytheinvesteethatchallengestheinvestor’sinfluenceSurrenderofsignificantstockholderrightsbyagreementbetweeninvestorandinvesteeConcentrationofmajorityownershipInadequateoruntimelyinformationtoapplytheequitymethodFailuretoobtainrepresentationontheinvestee’sboardofdirectorsFairValue/CostMethodStockInvestments–InvestorAccountingandReportingFairValue(Cost)MethodFASBStatementNo.115Popbuys2,000sharesofSonfor$50,000anddoesnothavesignificantinfluenceoverSon.InvestmentinSon(+A)50,000blankCash(-A)blank50,000Popreceives$4,000individendsfromSon.Cash(+A)2,000blankDividendincome(R,+SE)blank2,000FairValue(Cost)Method,atYear-endReducedividendincomerecognized,ifneededDividendincome(-R,-SE)500blankInvestmentinSon(-A)blank500IfPopdeterminesthatcumulativedividendsexceeditscumulativeshareofincomeby$500AdjustinvestmenttofairvalueAllowancetoadjustavailable-for-salesecuritiestomarketvalue(+A)10,500blankUnrealizedgainonavailable-for-salesecurities(+SE)Blank10,500Iffairvalueofthestockincreasesto$60,000,andtheInvestmentinSonaccountbalanceis$49,500EquityMethod(1of2)StockInvestments–InvestorAccountingandReportingEquityMethod(2of2)Atacquisition,Popbuys2,000sharesofSonfor$50,000.InvestmentinSon(+A)50,000blank

Cash(-A)blank50,000Popreceives$4,000individendsfromSon.Cash(+A)2,000blankInvestmentinSon(-A)blank2,000EquityMethod,atYear-endPopdeterminesthatitsshareofSon'sincomeis$2,500.InvestmentinSon(+A)2,500blankIncomefromSon(R,+SE)blank2,500TheendingbalanceintheInvestmentinSonis:$50,000cost-$2,000dividends+$2,500income=$50,500ApplyingtheEquityMethodStockInvestments–InvestorAccountingandReportingAcquisitionCost>FVnetassets,andFVnetassets>BVnetassetsPamacquires30%ofSonfor$5,000,000.Sheen'sidentifiablenetassets(assetslessliabilities)are(inthousands):Fairvalue:A–L=$18,800-$2,800=$16,000Bookvalue:A–L=E=$15,000-$3,000=$12,000$5,000>30%(16,000)

>30%(12,000)$5,000>$4,800

>$3,600DifferencesbetweenFVandBVFairvalue:$16,000Bookvalue:$12,000The$4,000difference($16,000-$12,000)isdueto$1,000undervaluedinventoriessoldthisyear,$200overvaluedothercurrentassetsusedthisyear,$3,000undervaluedequipmentwithalifeof20years,and$200overvaluednotespayableduein5years.AcquisitionofSunStockAtacquisition,Pampays$2,000cashandissuescommonstockwithafairvalueof$3,000andparvalueof$2,000.Pamalsopays$50toregisterthesecuritiesand$100inconsultingfees.InvestmentinSun(+A)5,000blankCommonstock,atpar(+SE)blank2,000Additionalpaidincapital(+SE)blank1,000Cash(-A)blank2,000Investmentexpense(E,-SE)100blankAdditionalpaidincapital(-SE)50blankCash(-A)blank150Cost/BookValueAssignmentInvestmentinSun$5,000Less30%bookvalue=30%($12,000)3,600Excessofcostoverbookvalue$1,400AssignedtoAmountAmortizationInventories30%(+1,000)$3001styearOthercurr.assets30%(-200)(60)1styearEquipment30%(+3,000)90020yearsNotepayable30%(+200)605yearsGoodwill(tobalance)200None

Total$1,400blankDividendsandIncomePamreceives$300dividendsfromSun.Cash(+A)300blankInvestmentinSun(-A)

blank300Sunreportsnetincomeof$3million.Pennywillrecognizeitsshare(30%)ofSheen'sincome,butwilladjustitforamortizationofthedifferencesbetweenbookandfairvalues.AmortizationandInvestmentIncomeCost/bookvaluedifferencesInitialamount1styearamort.Unamortized

excess

atyear-endInventories$300$300)$0Othercurrentassets(60)600Equipment900(45)855Notepayable60(12)48Goodwill2000200Total$1,400($297)$1,103Investmentincomeis30%ofSun'snetincome–amortization30%($3,000)–$297=$603.Year-EndEntry&BalanceRecordtheinvestmentincome(singleentry)InvestmentinSun(+A)603blankIncomefromSun(R,+SE)blank603TheendingbalanceintheInvestmentaccountis:Cost–dividends+investmentincome5,000–300+603=5,303MoreonCost/BookValueAssignmentOnacquisitiondate,compare:Costofacquisition,Bookvalueofnetassets,andFairvalueofidentifiablenetassetsCostoftheinvestmentincludescashpaid,fairvalueofsecuritiesissued,anddebtassumed.Thebookvalueoftheinvestee'snetassets=assets–liabilities,or=stockholders'equityFairValuesUsedinAssignmentIdentifiablenetassetsincludealltheinvestee'sassetsandliabilities,whetherrecordedornotFairvalueofresearchinprogressFairvalueofcontingentliabilitiesFairvalueofunrecordedpatentsException:usebookvalueforpensionsanddeferredtaxes.Ifcost>fairvalue,goodwillexists.Ifcost<fairvalue,abargainpurchaseexists.BargainPurchaseWhentheacquisitioncostislessthanthefairvalueoftheidentifiablenetassets,againisrecognizedontheacquisition.TheinvestmentisrecordedatthefairvalueoftheidentifiablenetassetsInvestmentinABCXXXblankCash,CS,APICblankXXXGainonbargainpurchaseblankXXXInterimAcquisitionsBookvalueofnetassets=BVequityIfequityisgivenasbeginningofyear,addcurrentearningsanddeductdividendstodate.Amortizationforfirstpartialyear:Takefullamortizationforinventoryandothercurrentassetsdisposedofbyyear-end.Takepartialyear'samortizationforequipment,buildings,anddebttobewrittenoffovermultipleyears.Recorddividendsifaftertheacquisitiondate.AcquisitioninStagesAlsocalledastep-by-stepacquisition.Fairvalue(cost)method

equitymethodRestateprior-periodstatementsInvestee'sgrowthinretainedearningsisExcessofincomeoverdividendsdeclaredInvestmentaccountdesiredbalanceusingequitymethod=originalcost+shareofgrowthininvestee’sretainedearnings–amortization,ifanyInvestmentinXYZ(+A)XXXblankRetainedearnings(+SE)blankXXXSaleofEquityInterestSaleofinvestmentthatresultsinalackofsignificantinfluenceovertheinvesteeEquitymethodfairvalue(cost)methodProspectivetreatmentForthesaleReducetheinvestmentaccountforaproportionateshareofthestocksoldRecordagainorlossonthesaleApplythefairvalue(cost)methodtoremaininginvestmentStockPurchasedfromInvesteeIfstockispurchasedfromoldshareholders,thepercentageownershipisbasedonthesharesoutstanding,andtheinvestee'sequityisnotchanged.Ifacquireddirectlyfromtheinvestee:Percentageacquired=sharesacquired/(sharesacquired+previouslyoutstandingshares)Investee'snewstockholders'equity=previousequity+valuereceivedfornewsharesInvesteewithPreferredStock(1of2)Comparecostofacquisitiontothebookvalueofthecommonstock.=Totalequity–bookvalueofpreferredstock**BVofPS=callvalue+dividendsinarrearsDividendsreceivedwillbeaportionofthedividendstocommonshareholders.=Totaldividends–currentPSdividendsInvesteewithPreferredStock(2of2)Investmentincomeisbasedonincomeavailabletocommonshareholders.=Investeenetincome–PSdividends****PSDiv.=currentdividendifcumulative,ordividendsdeclaredifnoncumulativeSpecialReportingIssuesIfaccountingforaninvestmentundertheequitymethod,one-lineconsolidationdoesnotapplytothereportingofinvestmentincomewhentheinvestee’sincomeincludesdiscontinuedoperations.Inthiscase,discontinuedoperationsisrecordedasseparatefrominvestmentincome.DisclosuresForsignificantequityinvesteesName,percentownershipAccountingpolicyDifferencebetweeninvestmentcarryingvalueandunderlyingequityinnetassetsAggregatemarketvalueSummarizedassets,liabilities,resultsofoperationsRelatedpartydisclosures FASBASC850-10-50-5GoodwillImpairment(1of2)StockInvestments–InvestorAccountingandReportingGoodwillImpairment(2of2)Testannual