Study Session 5: Financial Reporting and Analysis: Intercorporate Investments, Post-Employment and Share Based Compensation, and Multinational Operations
The Statement：if one entity absorbs the majority of the variable interest entity residual income and another entity absorbs the majority of the VIE’s losses, then the entity that is absorbing the residual income needs to consolidate the VIE
Correct answer：the statement is incorrect as it should be the entity that is absorbing the majority of the VIE’s losses that needs to consolidate the VIE.
Why？isn’t SPE regarded as VIE and must consolidated when
1. Equity less than 10%
2. Shareholder don’t have decision making
3. Shareholder don’t absorbs losses
Does anyone know how to adjust dividends when restating for inflation under IFRS?
I’m confused as to which factors exactly affect those two. It seems like it’s unclear in Schweser. For example, life expectancy, salary increase assumptions, years of service, and so on. I’m confused as to which of these types of factors would go under past service costs vs. actuarial gains/losses.
Any idea on how the Equity portion of the SPE is accounted for? In the curriculum Blue Box example (last example of the Intercorporate reading), they have shown that AR comes back, when we consolidate. But Equity? That is not considered while consolidating. Why?
In GAAP Reclassification, when we re-classify from HFT to AFS, why unrealized Gains/ Losses go to Income Statement and not to OCI?
Isn’t this from adjustments based on services employees have offered in the past? If not operating, is it financing then? And would it be difference under IFRS?
Does anyone know what rates we apply for interest and tax expense under temporal and current rate method? Thanks!
How is it that return on plan assets has no effect on PBO but is included in actuarial gains/losses (which DO affect PBO)? Which of the two is it?
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.