Question

The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following:

1.The preferred method of presenting a noncontrolling interest in a consolidated balance sheet would be as a separate item within the stockholders' equity section.

2.Where in the FASB code is it discussed how to record the initial measurement of a Variable Interest Entity in a Business Combination?

3.When a company assigns goodwill to a reporting unit acquired in a business combination, it must record an impairment loss if the fair value of the reporting unit is less than its carrying value and the carrying value of goodwill is more than the implied value of its goodwill.

Answer 1

SOLUTION :

Refer the following FASB Accounting standards / Interpretation for the following :

1) Summary of statement no.160 :

NONCONTROLLING INTERESTS IN CONSOLIDATED FINANCIAL STATEMENTS—AN AMENDMENT OF ARB NO. 51

2) Summary of interpretation no.46 :

i) CONSOLIDATION OF VARIABLE INTEREST ENTITIES - AN INTERPRETATION OF ARB NO.51

ii) FASB Code 805-20

3) FASB 805 Business combination - Subtopic 805-30

Accounting alternative - FASB 350 - Intangibles -Goodwill and other (Topic 350) - 350-20-15-4.

Thus all these citation are as per the FASB Accounting standards and codifications.

Hope you find those references usefull.