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not-for-profit entity (NFP), the $10,000 increase in additional paid-in capital in this Example is recognized instead as an increase in net assets, generally of the unrestricted class. Example 1 (see paragraphs 958-810-55-17 through 55-25)

provides additional sequence 66.1.1]

guidance

for

NFPs.

[ARB

51,

paragraph 33,

810-10-55-4E Even though the percentage of Entity ABC’s ownership interest in Subsidiary A is reduced when Subsidiary A issues shares to the third party, Entity ABC’s investment in Subsidiary A increases to $315,000, calculated as 75 percent of Subsidiary A’s equity of $420,000 ($300,000 + $120,000). Therefore, Entity ABC recognizes a $45,000 increase in its investment in Subsidiary A ($315,000 – $270,000) and a corresponding increase in its additional paid-in capital (that is, the additional paid-in capital attributable to Entity ABC). In addition, the noncontrolling interest is increased to $105,000, calculated as 25 percent of $420,000. (If the parent is an NFP, the $45,000 increase in additional paid-in capital in this example is recognized instead as an increase in net assets, generally of the unrestricted class. Example 1 (see paragraphs 958-810-55-17

through

55-25)

provides

additional

guidance

for

NFPs.

[ARB

51,

paragraph 33,

sequence 66.3.1]

44.

Amend paragraph 810-10-65-1

and

its

related

heading,

with

no

link

to

a

transition paragraph, as follows:

  • >

    Transition Related to FASB StatementsStatement No. 160, Noncontrolling

Interests in Consolidated Financial Statementsan amendment of ARB No. 51, and No. 164, Not-for-Profit Entities: Mergers and Acquisitions

810-10-65-1 The following represents the transition and effective date information related to FASB StatementStatements No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51, and No. 164, Not-for-Profit Entities: Mergers and Acquisitions:

  • a.

    Except as noted in item (d), the pending content that links to this paragraph is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited.

  • b.

    The pending content that links to this paragraph shall be applied prospectively as of the beginning of the fiscal year in that content is initially adopted, except for the presentation and disclosure requirements. The presentation and disclosure requirements shall be applied retrospectively for all periods presented, as follows:

    • 1.

      The noncontrolling interest shall be reclassified to equity in accordance with paragraph 810-10-45-16.

    • 2.

      Consolidated net income shall be adjusted to include the net income attributed to the noncontrolling interest.

    • 3.

      Consolidated comprehensive income shall be adjusted to include the comprehensive income attributed to the noncontrolling interest.

85

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