Home
Search results “Equity method accounting investment”
Equity Method of Accounting for Investments
 
06:46
This video uses a comprehensive example to demonstrate how to account for investments using the Equity Method. When an investor owns between 20% and 50% of a firm's stock, the investor is deemed to have significant influence and must recognize a proportionate share of the firm's earnings. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 56055 Edspira
Equity Method of Investment (New FASB) | Intermediate Accounting | CPA Exam FAR | Chp 17 p 6
 
27:45
Debt investment, equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment
Equity Method Accounting
 
02:49
The equity method is a type of accounting used for investments. This method is used when the investor holds significant influence over the investee, but does not exercise full control over it, as in the relationship between a parent company and its subsidiary. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/equity-method/
Advanced Accounting - Equity Method - Investment in Investee
 
08:56
For more videos like this go to www.patrickleemsa.com. Join Robinhood and we'll both get a share of stock like Apple, Ford, or Sprint for free. To do so, make sure you click on this link: https://share.robinhood.com/patrickl803 ___________________________________ NETWORK WITH ME! PATRICKLEECPA Twitter - https://twitter.com/patrickleecpa Website – https://www.patrickleecmsa.com ___________________________________________ Send a letter or send something cool about how you’re using these videos. Patrick Lee, MSA PO Box 936 Winfield, Kansas 67156 ___________________________________________ WORK WITH ME! CONTACT US: [email protected]
Views: 7471 Patrick Lee
Equity Method vs Fair Value Method (Financial Accounting)
 
05:19
This video shows the differences between the Equity Method and Fair Value Method of accounting for investments. A comprehensive example is presented to illustrate how the Equity Method requires the investor to recognize a proportionate share of the investee's net income or loss, while the Fair Value Method requires the investor to recognize dividend revenue and unrealized holding gains or losses. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 50667 Edspira
FAR Exam Cost and Equity Method
 
45:54
Pulled straight from the FAR section of the Roger CPA Review course, this Study Session features Roger Philipp, CPA, CGMA, teaching Cost and Equity Method. Using the renowned Roger Method™, Roger will help you master this classic CPA exam "hot topic" through his motivational and dynamic lecture, plus an exclusive excerpt from the course textbook. Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Alright, the next area we’re going to talk about deals with cost equity...do I have good volume there, good volume? Yeah? Very nice. Alright, cost equity. So we’re talking about investments. We’re actually going to talk in two different sections, cost equity and the next section is called marketable securities.
Views: 176909 Roger CPA Review
IAS 28 Investments in Associates and Joint Ventures
 
10:53
http://www.ifrsbox.com This is the short summary of the standard IAS 28 Investments in Associates and Joint Ventures .The objective of IAS 28 is: • To prescribe the accounting for investments in associates, and • To set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. Standard IAS 28 defines significant influence as the power to participate in the financial and operating policy decisions of the investee, but is NOT a control or joint control of those policies. The main indicator of significant influence is holding (directly or indirectly) more than 20% of the voting power of the investee. The basic principles of equity method are: 1. The investment in an associate or joint venture is recognized at cost on initial recognition (acquisition date). 2. The carrying amount of the investment is increased or decreased by the investor’s share on investee’s net profit or loss after the acquisition date. 3. When investee distributes some dividends to the investor, then this distribution decreases the carrying amount of the investment. IAS 28 sets also exemptions from equity method, when to discontinue equity method and equity method procedures.
Views: 64263 Silvia M. (of IFRSbox)
Consolidated Financial Statements--Equity Method (Part 1)Advanced Accounting |CPA Exam FAR| Ch 4 P 5
 
40:21
Equity method, Consolidated financial statement, non controlling interest, cost method, equity method, complete equity method, partial equity method, accounting for stock investment, elimination entries, consolidation, consolidated financial statement, advanced accounting, cpa exam, acquirer, acquiree, Investment in Subsidiary, Accounting for stock acquisitions, parent, subsidiary, liquidating dividend
Statement of Cash Flows:  How to Account for Equity Method Investments
 
07:14
This video shows the effect of an Equity Method investment on the Statement of Cash Flows. When the investor recognizes a share of the investee's Net Income, the investor must subtract this amount as an adjustment in the cash flow from operating activities section. When the investor recognizes a share of the investee's Net Loss, the investor must add this amount as an adjustment in the cash flow from operating activities section. If the investor receives dividends from the investee, the dividends received are added as an adjustment in the cash flow from operating activities section. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 3518 Edspira
9 - The Equity Method of Accounting
 
03:05
An overview of the equity method of accounting, to accompany http://www.principlesofaccounting.com Chapter 9, Long-Term Investments *Check out the Classroom page to find out how to take this course for credit: http://www.principlesofaccounting.com/classroom.html
Views: 38149 Larry Walther
Equity method, accounting for basis differences
 
03:41
Learn more at PwC.com - http://pwc.to/1Q3kjrl Equity method investments can have a few quirks when dealing with the accounting. Tune in to hear PwC’s Chris Barello discuss accounting for basis differences.
Views: 1671 PwC US
Equity Method - Accounting for Investments
 
10:18
In this video I discuss the journal entries required under the equity method of accounting for investments. US GAAP.
Views: 2347 O'Reilly Accounting
Consolidated Financial Statements in case of Associates - AS 23 - By CA Gopal Somani
 
12:42
This Video helps in understanding the Consolidation of Associates as per Accounting Standard 23. This will be useful for CA, CS, CMA and B.com students.
Views: 12202 CA Gopal Somani
Differences between cost and equity methods of investments | Cost Method | Equity Method
 
10:05
www.bisptrainings.com, www.bispsolutions.com
Views: 637 Amit Sharma
Fair Value Method for Equity Investments (less than 20% ownership stake)
 
07:13
This video shows how to use the Fair Value Method to account for Equity Investments. The Fair Value Method is used when a firm owns less than 20% of the stock of the investee (if the firm owns between 20% and 50% of the investee, it can make an irrevocable election to use the Fair Value Method). The Fair Value Method requires that the investment be marked to market (its fair value) on the Balance Sheet, and that any unrealized gains or losses flow through the Income Statement to affect Net Income. Also, any dividends received from the investee are recorded as dividend revenue, which increases Net Income. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 14654 Edspira
What is EQUITY METHOD? What does EQUITY METHOD mean? EQUITY METHOD meaning & explanation
 
01:39
What is EQUITY METHOD? What does EQUITY METHOD mean? EQUITY METHOD meaning & explanation. Equity method in accounting is the process of treating equity investments, in associate companies. The investor keeps such equities as an asset. The investor's proportional share of the associate company's net income increases the investment (and a net loss decreases the investment), and proportional payments of dividends decrease it. In the investor’s income statement, the proportional share of the investor’s net income or net loss is reported as a single-line item. Equity accounting is usually applied where the entity holds 20–50% of voting stock, since this implies significant influence on the decisions of the associate by the holding company. Equity accounting may also be appropriate where the holding falls outside this range and may be inappropriate for some entities within this range depending on the nature of the actual relationship between the investor and investee. The ownership of more than 50% of voting stock creates a subsidiary. Its financial statements consolidate into the parent's. The ownership of less than 20% creates an investment position carried at historic book or fair market value (if available for sale or held for trading) in the investor's balance sheet.
Views: 530 The Audiopedia
Cost Vs Equity Method For Business Consolidation
 
09:36
Cost versus the equity method for business consolidations,explain each method for consolidated financial statement between affiliated companies, the parent and subsidiary, investment and equity alignment and other basic differences, detailed accounting example explained by Allen Mursau
Views: 14074 Allen Mursau
Equity Investments Equity Method
 
09:15
This lecture describes accounting for equity securities using the equity method.
Advanced Accounting Ch 1 Equity Method Illustrative Problem
 
22:40
This video illustrates the end-of-chapter (Ch. 1) comprehensive illustrative problem re. applying the Equity Method of accounting for an investee. This video is designed for the ACC410 course within California Baptist University's OPS Division.
Views: 20782 Bruce Marshall
Investments in Equity Securities (pre-2018 U.S. GAAP rule change)
 
05:43
**NOTE: U.S. GAAP (ASU 2016-13) SAYS COMPANIES CAN NO LONGER TREAT EQUITY INVESTMENTS AS AVAILABLE-FOR-SALE BEGINNING IN 2018** This video outlines the proper accounting for investments in equity securities. The appropriate accounting treatment depends on the percentage of shares owned in the investee. Less than 20% ownership: use the Fair Value Method, with unrealized gains or losses going to Net Income (if Trading securities) or Other Comprehensive Income (if Available-for-Sale securities). 20%-50% ownership: use the Equity Method, with the investor recognizes a proportionate share of the investee's Net Income. More than 50% ownership: use the consolidation method to bring the investee's assets and liabilities onto the books of the investor. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 11132 Edspira
Accounting for Investments in Common Stock
 
20:00
An overview of the different ways of accounting for common stock investments. The Cost Method, Equity Method, Fair Value Method, and Consolidation are discussed.
Views: 6384 Alison Riley
Equity method: assessing significant influence
 
03:36
Learn more at PwC.com - http://pwc.to/1DNORmI Hear Brad Jansen share his insights on how to assess significant influence in the equity method of accounting.
Views: 2838 PwC US
The Equity Method of Accounting for Investments
 
02:40
On January 5, Bronson Company procured 40% of the outstanding stock of Vivian Company for $150,000. For the year ended December 31, Vivian Company earned income of $60,000 and paid dividends of $25,000. Determine the entries for Bronson Company for the purchase of the stock, the share of Vivian Company, and the dividends received from Vivian Company.
Investment in Equity Securities | Intermediate Accounting | CPA Exam FAR | Chp 17 p 5
 
23:35
equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment, equity method, investor, investee. consolidation, other comprehensive income, cost method, significant influence,
Chapter 1- Equity Method of Accounting
 
16:50
To overview when to use the equity method and how to account for an investment using equity method.
Views: 2144 Hustona12
Investments in Stocks | Advanced Accounting | CPA Exam FAR | Ch 4 P 1
 
31:34
Consolidated financial statement, non controlling interest, cost method, equity method, complete equity method, partial equity method, accounting for stock investment, elimination entries, consolidation, consolidated financial statement, advanced accounting, cpa exam, acquirer, acquiree, Investment in Subsidiary, Variable interest entity, Enron, special purpose entity Accounting for stock acquisitions, parent, subsidiary, liquidating dividend
Advanced Accounting 7B Investment in Subsidiary Account/ Equity Method
 
06:39
Ken Boyd is the owner of St. Louis Test Preparation (www.stltest.net). He provides tutoring in accounting and finance to both graduate and undergraduate students. Ken is the author of Cost Accounting for Dummies (Available in March of 2013). As a former CPA, Auditor, Tax Preparer and College Professor, Boyd brings a wealth of business experience to education.
Views: 3153 AccountingED
Accounting for Investments (Equity and Debt Securities)
 
08:25
This video provides an overview of the accounting rules and classifications for different types of investments. Investments can be broadly grouped into two types: debt investments and equity investments. Debt investments can be held-to-maturity (presented on the Balance Sheet at amortized cost, with changes in fair value not affecting Net Income), available-for-sale (presented on the Balance Sheet at fair value, with unrealized gains or losses bypassing the Income Statement and flowing through Other Comprehensive Income), or Trading (presented on the Balance Sheet at fair value, with unrealized gains or losses affecting Net Income. Equity investments are treated as Trading Securities according to the Fair Value Method (if the investor owns less than 20% of the investee), which marks the investment to market on the Balance Sheet and has unrealized gains or losses flow through Net Income. There is a practicability exception, however: if the fair value cannot be determined, the investment is presented on the Balance Sheet at cost, minus any impairments. If the investor owns between 20% and 50% of the investee the Equity Method is used; with this method, the investor does not recognize dividend revenue but instead recognizes a proportionate share of the investee's Net Income. If the investor owns more than 50% of the investee, the investor must consolidate the investee (the two entities are treated as one consolidated entity). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 24992 Edspira
Equity Method of Investment | Financial Accounting | CPA Exam FAR | Chp 15 p 3
 
22:53
Trading securities, available for sales, held to maturities, amortized cost, fair value, unrealized gain, unrealized loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, debt investment, equity investment, realized gain, realized loss, fair value adjustment, unrealized holding gain, unrealized holding loss, equity method, investor, investee. consolidation, other comprehensive income, cost method, significant influence, parent subsidiary, impairment,
5 Advanced Accounting: Equity Method Consolidations
 
18:44
This lessons works through a post acquisition consolidation with a parent that uses the equity method of accounting for its investment in the subsidiary. For more information on this topic, and other finance topics, visit our website at www.FinanceLearningAcademy.com. (Video 5 of 20)
Views: 34467 Executive Finance
Equity Method Accounting for Dividend
 
02:16
Equity Method Accounting for Dividend
Views: 741 mattfishable
Consolidated Financial Statements--Equity Method (Part 2)Advanced Accounting |CPA Exam FAR| Ch 4 P 6
 
13:01
Equity method, Consolidated financial statement, non controlling interest, cost method, equity method, complete equity method, partial equity method, accounting for stock investment, elimination entries, consolidation, consolidated financial statement, advanced accounting, cpa exam, acquirer, acquiree, Investment in Subsidiary, Variable interest entity, Enron, special purpose entity Accounting for stock acquisitions, parent, subsidiary, liquidating dividend, cpa exam, advanced accounting
Stock Investment Equity Method - Net Income
 
03:11
Stock Investment Equity Method - Net Income
Views: 504 mattfishable
Equity Method of Investment (Old FASB) | Intermediate Accounting | CPA Exam FAR | Chp 17
 
18:14
Debt investment, equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment
Investing in Stocks (The Equity Method)
 
06:55
Accounting for investments in other companies when we can exercise significant influence.
Views: 45 Russell Jacobus
Equity Securities Ownership Interest (Equity Method For Recording Investment Interest In A Corp)
 
13:40
Accounting for equity method for equity securities as ownership interest as investment in another company (acquirer company purchases securities of another company), Reporting Investment Using The Equity Method (Ownership between 20% to 50%, with 25% Holding C/S), the fair value method reports the securities as available for sale at their cost which requires a valuation account to report the securities at their fair value, which requires an unrealized holding gain or loss to equity, the equity method reports the securities as an investment which carrying amount is reduced by the dividends received and increased by the net income for the percent ownership in the acquiree companys securities, detailed accounting by Allen Mursau
Views: 4238 Allen Mursau
Equity Investments, Part 4: Gains and Losses on the Sale of an Investment
 
16:24
In this video (Part 4 of this series on Equity Investments AKA Associate Companies AKA Minority Stakes or Minority Investments) By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" We'll also walk through what happens when you SELL your stake in another company and record a gain or loss on the sale of the investment. Step 1: Determine the Purchase Price and Gain or Loss In real life, you would do this by valuing Charter Communications via public comps, precedent transactions, and a DCF and assigning a value to the entire company, figuring out its implied Equity Value and multiplying by Liberty Media's ownership percentage. Or you could take the price offered by potential or existing buyers of this minority stake. Here, we're more focused on the mechanics so we're assuming a price of $3.5B, which would represent about a $505 million Gain on the book value of the Equity Investment at the time of the sale (which we assume happens on December 31st of the year in the model). We'll also look at the case where it's sold for $2.5B instead and Liberty Media therefore records a $495 million Loss. Step 2: Reflect the Changes on the Financial Statements Easiest method here: create a "Transaction Adjustments" area and only bother to adjust the Balance Sheet - yes, you COULD also adjust the IS and CFS and create pro-forma historical statements, but it would take longer and is not truly necessary for the analysis. It's better / easier to build a pro-forma Balance Sheet and then alter the forward numbers beyond the year 2014 here. Step 2.1: Add the proceeds from the sale itself (~$3.0B) to Cash on the Assets side. Step 2.2: ALSO add the after-tax gain or loss to Cash on the Assets side. Remember, we're taxed on capital gains and we can receive a tax deduction for capital losses, but we are NOT taxed on the cash received for selling the investment itself! So in this case, cash increases from $804 million to $4.1 billion... if there were a loss instead, cash would still go up but would go up by less than this. Step 2.3: Remove the Equity Investments line item - Credit the entire amount prior to the sale, so that the Pro-Forma column shows $0 there. Step 2.4: Adjust the Retained Earnings on the L&E side and also reflect the after-tax gain or loss there. Why? Because it would ordinarily show up on the Income Statement and therefore affect Net Income, and Net Income flows into Retained Earnings... so we're just taking a "shortcut" here and show the ultimate impact after it flows through the Income Statement. Step 2.5: Check that the Balance Sheet still balances - pretty important to get this right... Step 3: Modify the Future Financial Statements Remove the Net Income from Equity Investments and the Dividends Received from Equity Investments on future Income Statement and Cash Flow Statement projections. Not necessary here, but you'd need to do this in real life if you had projections beyond our final year here. Best to just set all these to a hard-coded $0. What Next? Now you're done! That's how Equity Investments work, and how you reflect the initial purchase, the flow-through of Net Income and Dividends, a stake increase, and the eventual sale of these investments and any accompanying gain or loss. Go practice by yourself and take a deal or company of your choosing and try to replicate this - and for a slightly more advanced topic, start learning about Noncontrolling Interests (formerly known as Minority Interests) and how those work... coming up in another set of tutorials from us soon.
Advanced Accounting - Equity Method - Journal Entries
 
08:33
For more videos like this go to www.patrickleemsa.com. ___________________________________ NETWORK WITH ME! PATRICKLEECPA Twitter - https://twitter.com/patrickleecpa Website – https://www.patrickleecmsa.com ___________________________________________ Send a letter or send something cool about how you’re using these videos. Patrick Lee, MSA PO Box 936 Winfield, Kansas 67156 ___________________________________________ WORK WITH ME! CONTACT US: [email protected]
Views: 6019 Patrick Lee
Equity Securities Ownership Interest (Fair Value Method Vs Equity Method For Holding Interest)
 
12:55
Accounting for fair value vs equity method for equity securities as ownership interest as investment in another company (acquirer company purchases securities of another company), (1) Reporting Investment Using Fair Value Method (Ownership Interest less than 20%, with 10% Holding C/S), (2) Reporting Investment Using The Equity Method (Ownership between 20% to 50%, with 25% Holding C/S), the fair value method reports the securities as available for sale at their cost which requires a valuation account to report the securities at their fair value, which requires an unrealized holding gain or loss to equity, the equity method reports the securities as an investment which carrying amount is reduced by the dividends received and increased by the net income for the percent ownership in the acquiree companys securities, detailed accounting by Allen Mursau
Views: 3607 Allen Mursau
Consolidate Simple Equity Method For Year Of Acquisition (Example Based On Year One)
 
09:45
Consolidation procedures using the simple equity method, parent company will be consolidated with subsidiary company, example is for consolidation for the year of acquisition (first year), example will be based on the adjustments and eliminations that are completed on a consolidation worksheet, aligning the equity account with the investment account for the same point in time, includes the eliminations and adjustments required, determination and distribution schedule, etc. detailed procedure with calculations and accounting example by Allen Mursau
Views: 8328 Allen Mursau
Example: Equity Method vs Fair Value Method (Old FASB) Intermediate Accounting |CPA Exam FAR|Chp17
 
16:31
Trading securities, available for sales, held to maturities, amortized cost, fair value, unrealized gain, unrealized loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, debt investment, equity investment, realized gain, realized loss, fair value adjustment, unrealized holding gain, unrealized holding loss, equity method, investor, investee, consolidation, other comprehensive income, cost method, significant influence, parent, subsidiary, impairment,
Accounting for Business Combinations - Investments for Associates 1
 
32:58
Covers Investments in associates: - Calculating share of equity - Equity accounting journals fundamentals - Parent vs Non-parent
Views: 1143 Ben's Business Videos
CFA Level II - FRA : Inter-corporate Investment-Investment in Associates- Part II (of 3)
 
01:10:27
FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... Part I and Part III of this video lectures series are available for Registered Students. This series of the video lectures covers the following area's: --Accouting for Investment in Financial Assets --Investment in associets --Joint ventures --business combinations -Effect of the equity method vs aquisition method We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level II Classes in Pune (India).
Views: 21815 FinTree
Consolidation--Equity Method (Partial-Year Alternative) Advanced Accounting| CPA Exam FAR | Ch 4 P 8
 
25:22
Equity method,full year reporting alternative, partial year reporting alternative,Consolidated financial statement, non controlling interest, cost method, equity method, complete equity method, partial equity method, accounting for stock investment, elimination entries, consolidation, consolidated financial statement, advanced accounting, cpa exam, acquirer, acquiree, Investment in Subsidiary, Variable interest entity, Enron, special purpose entity Accounting for stock acquisitions, parent, subsidiary, liquidating dividend
Equity Investments, Part 2: Net Income and Dividends
 
16:51
In this lesson, you'll learn how to reflect Net Income and Dividends from Equity Investments - also known as Associate Companies or Investments in Equity Interests or Partially Owned Subsidiaries, among other names. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Once again, we'll use Liberty Media's acquisition of 27% of Charter Communications for the case study here. According to accounting rules (under both US GAAP and IFRS), when a parent company owns between 20% and 50% of another company and exerts "significant influence" (among other rules), it is required to apply the "Equity Method of Accounting for Investments." This means that the ownership in this other company is recorded as an Asset on the Balance Sheet, and that: 1. On the Income Statement, the parent company (Liberty Media) must ADD its percent ownership * Charter Communication's Net Income at the bottom. 2. On the Cash Flow Statement, the parent company then SUBTRACTS that portion of the Net Income... because it's non-cash. Why? Think of it like this: if you buy stock in a company and the company earns Net Income, do you physically receive that Net Income in cash? No! You only get cash if the company chooses to issue some of that Net Income in the form of Dividends... and it's exactly the same here. If the other company has recorded a Net Loss, then you'd just record % Ownership * Net Loss on the Income Statement, making Net Income at the bottom lower... and then add back that number on the CFS. 3. Then, you ADD the parent company's portion of dividends received from the other, partially owned company. Why? Because the parent company actually DOES receive those dividends in cash, so they SHOULD increase its cash balance. So you record Other Company's Dividends Issued * % Ownership as an addition on the Cash Flow Statement. As a result of all this, cash at the bottom of the CFS increases by the portion of dividends the parent company receives from the other company. 4. Finally, on the Balance Sheet: Here, you just ADD the portion of Net Income from the other company, and SUBTRACT the portion of Dividends to the Equity Investment line item. Example: You own 30% of another company. The Investments in Equity Interests line item is $1,000 currently. The other company records $100 in Net Income and issues $20 in dividends. Therefore, Investments in Equity Interests increases by $100 * 30%, or $30, and decreases by $20 * 30%, or $6, so overall it goes up by $24. If you had a Net Loss from the other company, that would cause this line item to decrease instead. This line item is sort of like a "mini-Shareholders' Equity" but for 20% to 50%-owned companies. There's probably an official accounting explanation somewhere, but that's how I think of this concept. Up Next In Part 3 of this series, we'll walk through what happens when Liberty Media increases its ownership in Charter. And then in Part 4, we'll walk through what happens when Liberty Media sells its ownership in Charter and no longer owns any stake in the company.
How to Make a Consolidated Balance Sheet
 
11:34
This video shows how to make a consolidated balance sheet when one company acquires 100% of another company. The consolidated balance sheet presents the assets and liabilities of the combined entity, but it is not as simple as adding the figures from the 2 separate balance sheets together (this would result in double-counting). To create the consolidated balance sheet, one must make a series of adjusting and eliminating entries that do the following: 1. Eliminate the purchaser's investment in the target 2. Eliminate the target's stockholders' equity accounts 3. Step up the target's assets to their fair value 4. Recognize any goodwill Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 28246 Edspira
6 Advanced Accounting: Cost Method Consolidation
 
12:57
This lesson works through a post acquisition consolidation with a parent that uses the cost method of accounting for its investment in the subsidiary. For more information on this topic and other finaance topics, visit our website at www.FinanceLearningAcademy.com. (Video 6 of 20)
Views: 7509 Executive Finance