acc401 discussion question

“Consolidated Financial Statements and Variable Interest Entities”

  • There have been “large” institutional and individuals investors say, U.S. GAAP treatment undervalued the parent’s investment carrying value for post-control step acquisitions. Construct one (1) argument in which you provide at least two (2) reasons for the U.S. GAAP treatment of reporting additional investments in subsidiaries when the parent previously established control. Provide support for your rationale.
 
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