Corporate Takeover Decision Making and the Effects on Consolidation Accounting

Running head: CORPORATE AND FINANCIAL ACCOUNTING
Corporate Takeover Decision Making and the Effects on Consolidation Accounting
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1CORPORATE AND FINANCIAL ACCOUNTING
Executive Summary:
The aim of this paper is to attain a scientific outline of the variety of "accounting"
types associated with the takeover decision undertaken by JKY Limited. When
subsidiary is involved in sale of goods having non-controlling interest to the group, it
is necessary to eliminate the whole unrecognised profit. This leads to a question of
whether the profit has to be disclosed in relation to non-controlling interest. Firstly,
the non-controlling costs have to be assigned to the unrealised share of profit. This
results in complete removal of the overall profit. The other approach includes no
allocation of unrealised profit to the non-controlling interests and the amount for such
interests reveals the share capital entitlement and reserves related to the subsidiary.
It could be said that the effect of reporting requirements of developing the group
financial statements.

2CORPORATE AND FINANCIAL ACCOUNTING
Table of Contents
Introduction:..................................................................................................................3
Part A Response:..........................................................................................................3
Part B Response:..........................................................................................................5
Part C Response:.........................................................................................................6
Conclusion:...................................................................................................................7
References:..................................................................................................................9