iska answer option B bhi correct hai kyoki cash balance toh increase honga na. plz explain.
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suppose kro hm yaha par do cases le rahe h
total assets ko 1500 already h usmai ae suppose kro $75 cash already us asset ke andar h
case 1 jb wo account receivables sell karega of 100$ to cash jo h wo increase ho jyega 75 se 175 or esne consolidate ni kiya h
case 2 jb yeh consolidate karega kyuki supreme health care loss ko absorbed karega when it may occur jb consolidate balance sheet kareghe to cash phir se tmhara increase ho jyega 75 se 175 so cash will remain the same
so option b is wrong
Ek doubt or tha.
Goodwill impairment ka h.
Jaise under equity method goodwill ko hum seperately test nhi kr skte for impairment. But under full control method, goodwill ko seperately test kr skte h for impairment??
This is because the equity method records the investor’s share of the investee’s net assets, which includes goodwill, as a single amount on the investor’s balance sheet. The investor’s share of any impairment loss related to the investee’s goodwill is included in the equity method’s share of the investee’s net income or loss.
On the other hand, under the full control method of accounting, the acquiring company records the net assets of the acquired company at their fair values, including any goodwill. The goodwill is then subject to annual impairment testing at the reporting unit level, which is the level at which management monitors the performance of the business and makes decisions about allocating resources. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized for the excess carrying amount of the reporting unit’s goodwill.
under the equity method, goodwill is not separately tested for impairment, whereas under the full control method, goodwill is subject to annual impairment testing