I can't read English for this problem

All of the following are exceptions to consolidated reporting required by SFAS 94 EXCEPT when control of the investee: A) was transferred to the investor within the last 12 months. B) is impeded by governmental interference. C) is temporary.

when is consolidated reporting not required by SFAS 94? a. When control of investee was transferred in the last 12 months b. when control of investee was impeded by govt. c. when control of investee is temporary. Ans A.

you’re right, can you tell me which LOS mentioned this?

sounds like somewhere in SS5

I just did a QBank set on SS 5, how come I never came across this SFAS94 before? Are you sure it is '09 material? Where did you get the question?

SFAS 94 is on page 25 of the Financial reporting and analysis CFAI book… but it doesnt go into any detail about the exceptions to consolidated reporitng. All it says about FAS94 is “SFAS No. 94 requires equity method accounting for joint ventures. In the United States, proportionate consolidation is generally not permitted except for unincorporated entities operating in certain industrues.” They pretty much just leave FAS94 at that. I think the key point that miught be on the test is: IFRS - uses proportionate consolidation but permits equity method for JV’s GAAP - must use equity method for JVs (FAS94)

Thanks, buddy. The last two lines sounds familiar. I agree those are the testing points.


If its a construction company then I read that US GAAP allows Proportionate consodliation? someone pls prepare an excel on differences between US gaap and IFRS for chapter 21. and please include the excppetions. THIS STUFF IS TOOOOO MUCH. MINORITY INTEREST!!! I HATE YOU!