Examples of state-owned enterprise in the following topics:
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Reporting for a Combined Entity
- When the amount of stock owned is >50% of common stock, a parent-subsidiary relationship is formed that requires consolidated reporting.
- A subsidiary company, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock.
- In some cases it is a government or state-owned enterprise.
- In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity, locomotives, and rolling stock.
- The following is an example of how to calculate consolidated net income -- assume ABC Corporation owns 80% of XYZ Corporation; the remaining 20% is a non-controlling ownership interest.
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Types of Investments: Dependence on Ownership Share
- A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock.
- In some cases, it is a government or state-owned enterprise.
- An operating subsidiary is a business term frequently used within the United States railroad industry.
- In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity, locomotives, and rolling stock.
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Defining Long-Lived Assets
- It is anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.
- Simply stated, assets represent value of ownership that can be converted into cash.
- All assets are resources controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise.
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Fundamental Concepts in Accounting
- Helps existing and potential investors and creditors and other users to assess the amounts, timing, and uncertainty of prospective net cash inflows to the enterprise;
- Identifies the economic resources of an enterprise, the claims to those resources, and the effects that transactions, events, and circumstances have on those resources.
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Outputs of Accounting
- For a business enterprise, relevant financial information presented in a structured manner is called a financial statement.
- A profit and loss statement provides information on the operation of the enterprise.
- These statements include sale and various expenses incurred during the processing state.
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Key Considerations for the Statement of Cash Flows
- Financing activities - activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise.
- Transactions include cash received by the company issuing its own capital stock and bonds, as well as any other short- or long-term borrowing it may do.
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Basic Components of Asset Valuation
- Accountants record gifts of plant assets at fair market value to provide information on all assets owned by the company.
- Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business enterprises, or intangible assets such as patents and trademarks) or on liabilities (e.g., bonds issued by a company).
- Accountants record gifts of plant assets at fair market value to provide information on all assets owned by the company.
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Introduction to GAAP
- Like many other common law countries, the United States government does not directly set accounting standards by statute.
- Time-period Principle: implies that the economic activities of an enterprise can be divided into artificial time periods.
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Preparing Financial Statements
- When a business enterprise presents all the relevant financial information in a structured and easy to understand manner, it is called a financial statement.
- The findings can state anything from the statements are accurate to statements are misleading.
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An Expanded Equation
- When a business enterprise presents all the relevant financial information in a structured and easy to understand manner, it is called a financial statement.
- The findings can state anything from the statements are accurate to statements are misleading.