In reference to cupernico case, #41 aft mock, they went from using consolidation method when having control of AdOre, to eqy method when having joint control. Are JV’s always accounted for with eqy method under GAAP? Thanks…over in 72 hrs.
For JVs, IFRS allows both prop consolidation and equity. US GAAP only allows equity method.
actually, I think technically GAAP allows prop consolidation, but prefers equity method. Still, for exam purposes, I would say it’s a good bet to assume you’re not allowed prop consolidation under GAAP.
For JVs, IFRS allows both prop consolidation and equity. US GAAP only allows equity method.
magic, yes i believe in some very minute circumstances GAAP does allow prop consolidation, but for the exam just know that it doesnt.
There was a question about this on a Schweser mock. US GAAP does allow proportionate consolidation in extreme cases.
ha! suck it mfin!
no disrespect btw
hahah glad I checked this before I head to sleep…made me laugh magicsky. My bad on that one, I forgot under extreme circumstances…hopefully this exact question will be on the exam and I will surely nail it when it counts
Was that an old question based on the pooling rules maybe?
This was a terribly worded question. By consolidation method, they mean acquisition method. And not proportionate consolidation.
piwanowi Wrote: ------------------------------------------------------- > magic, yes i believe in some very minute > circumstances GAAP does allow prop consolidation, > but for the exam just know that it doesnt. Yes. For unincorporated ventures in specialized industries. This has very limited usage. Vol 2, p. 120