Answer:
It is not formally recorded in the accounting record of the parent company if the subsidiary retains its incorporation.
Explanation:
IFRS 3 explains business acquisition as the taking over the control of an existing business by another with the acquired assets measured at the fair value at the date of transaction.
The combining of interest method has ceased to be considered by GAAP since 2001.
That means a subsidiary has to lose its incorporation for full acquisition or rather treated as an investment by the acquiring company.
I don't think that this question should be here, honestly. It could either be a normal discussion, or it could turn into a breeding ground for hate.
Everyone has an opinion. Let's not share them.
Answer:
I Disagree
Explanation:
The statement of cash flows is of extreme importance for a company and its stakeholders (especially investors). It shows how activities affecting the balance sheet and the financial statement also affect cash and cash equivalents, and while it is true that the balance sheet has an account under that name, it does not provide enough detail.
The statement of cash flows on the other hand details how much cash the company gets from financing, operating, and investing activities, and from this information, a potential investor can make crucial analysis when determining whether to invest or not.
These include any resource needed for the creation of a good or service. The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.
