Advanced Consolidation Accounting and Equity Methods
Consolidation Notes and BCVR Entries
Step 2: BCVR Entries
| Asset Status | Not Sold | If Sold – Current Year | If Sold – Prior Year |
|---|---|---|---|
| Inventory / General Assets |
Debit (DR) Asset Credit (CR) BCVR Credit (CR) Deferred Tax Liability (DTL) |
Inventory: DR Cost of Goods Sold (COGS) CR Income Tax Expense (ITE) CR Transfer from BCVR | No entry here – BCVR transferred to Retained Earnings (Step 3) |
| Depreciable Assets |
If Accumulated Depreciation: DR Accumulated Depreciation CR Asset CR DTL CR BCVR Following Years: DR Depreciation |
Accounting Templates: Trial Balance, Entries & Financials
Adjusted Trial Balance Format
Debit Column:
- Cash
- Accounts Receivable
- Interest Receivable
- Notes Receivable (short-term)
- Supplies
- Prepaid Insurance
- Prepaid Rent
- Merchandise Inventory
- Debt Investments (short-term)
- Land
- Buildings
- Equipment
- Vehicles
- Patents
- Copyrights
- Trademarks
- Goodwill
- Dividends
- Cost of Goods Sold
- Wages Expense
- Salaries Expense
- Depreciation Expense — Buildings
- Depreciation Expense — Equipment
- Insurance Expense
- Utilities Expense
- Interest Expense
- Supplies Expense
- Rent Expense
- Advertising Expense
- Delivery Expense
- Office
UNC MAC 710 Exam 1 Cheat Sheet — High-Yield Financial Accounting
UNC MAC 710 — Exam 1 Comprehensive Cheat Sheet
(High-yield, exam-oriented, organized for quick review)
1. Income Statement & Comprehensive Income
Core Definitions
Net income = revenues + gains 6 expenses 6 losses
OCI = items excluded from net income by standards (e.g., unrealized AFS, FX translation, hedges, pension adjustments)
Comprehensive Income
Net income + OCI
Why Net Income Matters
Evaluates past performance
Predicts future performance
Assesses risk and cash flow persistence
Limitations
Excludes
Essential Accounting Principles and Foundational Terminology
Essential Accounting Terminology and Principles
A
Accrual-Basis Accounting
The accounting basis in which companies record transactions that change a company’s financial statements in the periods in which the events occur.
Accruals
Adjusting entries for either accrued revenues or accrued expenses.
Accrued Expenses
Expenses incurred but not yet paid in cash or recorded.
Accrued Revenue
Revenues for services performed but not yet received in cash or recorded.
Adjusted Trial Balance
A list of accounts and their
AS-14 Amalgamation Accounting: Merger vs. Purchase
Accounting Treatment of Amalgamation as per AS-14
Accounting Standard (AS) 14, ‘Accounting for Amalgamations,’ issued by the Institute of Chartered Accountants of India (ICAI), prescribes the accounting treatment for amalgamations. The standard classifies amalgamations into two types, which determines the appropriate accounting method to be used by the Transferee Company (the acquiring/new company).
I. Types of Amalgamation
AS-14 distinguishes between two types of amalgamation based on the conditions
Read MoreAccounting Principles for PPE and Intangible Assets
Selling PPE and Recording Gains or Losses
Key Ideas: Property, Plant, and Equipment (PPE) is carried on the balance sheet at cost minus accumulated depreciation, which equals the book value (carrying value). When you sell an asset, you must:
- Remove the asset’s cost.
- Remove the related accumulated depreciation.
- Record the cash (or receivable) received.
The difference between cash received and book value is a gain or loss on sale.
Journal Entry Pattern
Assume: Cost of machine = $50,000; Accumulated depreciation
Read More