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Evaluate the basic concepts and standards behind the preparation of consolidated financial statements.

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Learning Outcomes for this Module Reminder:

  1. Evaluate the basic concepts and standards behind the preparation of consolidated financial statements.
  2. Illustrate the consolidation process for a less-than-wholly-owned subsidiary.
  3. Illustrate the consolidation process subsequent to acquisition including combined financial statements.
  4. Evaluate the rules for the consolidation of Variable Interest Entities (VIEs.).

In addition to the Assignment in Connect, please answer the following questions and submit your answers in a Word document:

W ith regards to your assignment performed in Connect, and what you read and learned about in this module, answer the following questions. 

You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below.

The concept of the accounting entity often is considered to be the most fundamental of accounting concepts, one that pervades all of accounting.  For each of the following, indicate whether the entity concept is applicable, discuss, and give illustrations to support your contention:

  1. A unit created by or under law
  2. The product-line segment of an enterprise
  3. A combination of legal units
  4. All the activities of an owner or a group of owners
  5. The economy of the United States


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