Prepare the journal entry required for consolidation purposes on the date of acquisition assuming current Canadian GAAP.

ABC invested $30 million in cash in DEF Inc, which was determined to be a VIE

whose primary beneficiary is ABC Inc. The balance sheet of DEF on the acquisition date January 1, 2016 is shown below (all figures in millions $$):



The fair value of DEF's non-controlling interest is $55.





What will be an ideal response?


Business

You might also like to view...

The ________ method allows managers to increase operating income through production by producing more products than needed.

A) absorption costing B) variable costing C) direct costing D) marginal costing

Business

Relationship retailing focuses on keeping existing customers, as well as attracting new ones

Indicate whether the statement is true or false

Business

If the bailee refuses to honor a document of title or other direction to deliver, the risk of loss remains on the buyer

Indicate whether the statement is true or false

Business

It's your first full-time job since graduation, and morale at the company you just joined is poor and no end seems to be in sight. What would you suggest to your supervisor to change a culture that is out of step with the company's strategy?

What will be an ideal response?

Business