Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Multigroup, a pharmaceuticals MNE based in Switzerland, decided to prepare consolidated financial statements for the first time. As there were no Swiss legal requirements regarding consolidation, Multigroup had to decide what accounting principles to use for its subsidiaries, joint ventures, and associates around the world. Multigroup's subsidiaries, all majority owned, were located in the United States, the United Kingdom, France, and Germany. A 50 percent-owned joint venture was located in the Netherlands. There were also interests in Associated Corporations at 30, 35, and 40 percent in the United States, the Netherlands, and Japan, respectively. In addition, there had been the recent acquisition of Bizcorp in the United States for a cash consideration of 750 million Swiss francs. The book value of the net assets of Bizcorp at the date of acquisition were 600 million Swiss francs, but at fair value they were valued at 670 million Swiss francs.

problems:

1. Discuss the possible alternative accounting treatments of Multigroup's subsidiaries, making special reference to U.S., U.K. and IASB GAAP. What is your recommended treatment?

2. Discuss the possible alternative accounting treatments of Multigroup's joint venture in the Netherlands. What is your recommended treatment?

3. Discuss the possible alternative accounting treatment for Multigroup's associated corporations. What is your recommended treatment?

4. Discuss the possible alternative treatments of goodwill in the case of the recent Bizcorp acquisition, making special reference to U.S. and U.K. GAAP. What is your recommended treatment?

5. Discuss the likely effects on Multigroup's financial statements of the decisions made concerning the treatment of subsidiaries, the joint venture, the associated corporations, and the recent acquisition. How do you think the securities markets would react to the disclosure of consolidated information?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M946189

Have any Question? 


Related Questions in Accounting Basics

1 regarding the ottoman territories during the period

1. Regarding the Ottoman territories during the period immediately following World War I, which of the following statements is false? A. Defying Allied pressure, the Turkish sultan supported Kemal. B. In 1921, Greek forc ...

Question 1under the allowance method bad debt expense is

Question 1 Under the allowance method, Bad Debt Expense is recorded A. as an estimate. B. when an individual account is written off. C. several times during the year as needed. D. None of the above Question 2 Which amoun ...

Questionin order to complete this project it will be

Question In order to complete this project, it will be necessary for you to access the FASB Codification website through the American Accounting Association. You may login at http://aaahq.org/ascLogin.cfm using the follo ...

Using what youve learned from this phase compare accrual

Using what you've learned from this phase, compare accrual accounting to cash flow accounting. Discuss the strengths as weaknesses of each. Consider how each accounting system impacts a company's strategy formation and t ...

Your city has decided to build a new library the projected

Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fu ...

Mnc paper and presentationgoogle company paper and

MNC Paper and Presentation: GOOGLE COMPANY Paper and Presentation will consist of research to write a paper on an annual SEC 10-K report filed by a public multinational corporation with the U.S. Securities and Exchange C ...

1 the objective of a firms management should be to only

1. The objective of a firm's management should be to only undertake the projects that ________ the market value of shareholders' equity. a. decrease b. increase c. do not change d. provide zero change to e. none of the a ...

Problem -using the following proforma information regarding

Problem - Using the following proforma information regarding GE, Inc. based on analysts' forecast in early 2016:   2016E 2017E Next 3 years EPS 1.29 1.56 Growth at 7.59% DPS 0.92 1.11 Growth at 10% The book value of GE's ...

Assume a local subway reported the following results for

Assume a local Subway reported the following results for April and May August September Unit Sales      2,000             2,500 Cost of Food Sold  $   1,000  $         1,250 Wages and Salaries      1,525             1,67 ...

Discussionsustainable income and ratio analysis please

Discussion "Sustainable Income and Ratio Analysis" Please respond to the following: • Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two it ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro