人気ブログランキング |
nnのCPA試験の旅 in Hawaii CPA試験の旅 in Hawaii

Hello again!


by nn_77
カレンダー
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

Minority Interest

Wednesday, March 22nd, 2006
*****************************************************
SCHEDULE
-------AUD:8/1  BEC:8/2   FAR:8/3  REG:8/4

*I have only 129 days to go before USCPA exam!

---Mar-------Apr-------May-------Jun-------Jul-------Aug
----l--------n--l----------l----------l----------l---------l---
*****************************************************
【3:00 a.m.】 Good Morning!
I could get up early in the morning again, thanks to the alarm vibrator of the cell phone. (In order not to bother my wife with the alarm, I've been sleeping in a different room alone.)

Yesterday I went over the topic of Business Combination, and my understanding on that became very clear. And on that day, I happened to find a post asking about Minority Interest on the CPA Net Forum, a website where a lot of US candidates for CPA exams are exchanging their views and a lot of info with each other.

Usually I'm just another observer of the forum. But, since the question was about Minority Interest and it was just after I went over the topic, I dared to leave my comment there, wondering what American students would think about my opinion, my English, etc...

【Question by an American USCPA candidates】-----------------

hi forks,

never understand this concept and i have one mcq related to this and trying to understand this but i can't. please help!!!!

A 70% owned subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and minority interest balances in the parent company's consolidated B/S?

can anyone suggest the answer and explanations?

thanks
----------------------------------------------------------------------------

【nn's answer】----------------------------------------------------------
Suppose the equity of the subsidiary company is now $100,000. Because the 70% of this subsidiary is owned by the parent company, $30,000 is Minority Interest (= interest of the other minor owners)and $70,000 is, so to speak, "parent's interest."
  Then, if the subsidiary declares and pays out the dividends of $20,000, the equity of the subsidiary company is then reduced from $100,000 to $80,000, and so the Minority Interest is also reduced to $24,000 (=30%of 80,000), accordingly, which is directly reflected on the consolidated financial statement.
The remaining "parent interest" part is reduced from $70,000 to $56,000 (= 70% of 80,000). When preparing the consolidated financial statement, however, this "parent's interest" part in the subsidiary's individual F/S (Cr.) is eliminated, being offset with "Investment in the subsidiary" account in the Parent's individual financial statement (Dr.). So, the subsidiary's declaration of dividends has No impact on the consolidated FS. ( If the parent company declared the dividends, on the contrary, that would have an impact on the amount of the equity in the consolidated FS.)

Anybody, please correct anything incorrect or wrong in my explanation above or in my English. I could be wrong...

note: "parent's interest," is a term that I used only for the explanatoin above. It is no offical term, of course.
----------------------------------------------------------------------------------------



Today, I awoke to find I have received a comment on my post, which said "I really like the way you explained. Good job !"

 先日、日本語の投稿で、「人から褒められて初めて自分を認めるのではなく、人の評価に頼らず、自分で自分自身と自分の行いが認められる人間に、私はならなくてはならない。」と書いたばかりではあるが、今回は、また別だ。
 自分の英語およびその英語によって説明を試みた企業合併の会計処理に関する内容が、本場アメリカの方に評価いただけたことは、ともすれば独りよがりの自己満足に陥りがちな(それも、手探りで行ってきた)これまでの勉強が的外れでは無かったということだから。
 それに何より、英語力そのものに価値を見出すのではなく、英語で何を伝えるか、という中身において、一定の成果を出せたようで、やっぱり、チョット、嬉しい。

 さあ、今日も頑張ろう。自分の計画よりは大きく遅れている!もう、選択と集中しかない!

 今日は、仕事の後、渡航代金のHISへの振込みと、あと、ANJOに模試の申し込みと、GLEIMのCD-ROMのFARとBECの購入に行くのだ。(CDのAUDとREGについては、CPA-Holderの方にお譲り頂くことができた。感謝。好意を無にせぬよう、やるべし!)

 などと思いながら、朝一番、手帳を見ると、今日は職場の飲み会のサブ幹事だ。。。カメラマンをせねば、、、。HISとANJOは、明日かな。 残念。 今日は、飲酒の誘惑に耐えるのだ、nn!帰ってきたら、ちゃんと勉強するのだぞ!
by nn_77 | 2006-03-22 03:18 | >FARE