Accounting for complex investment transactions

Natalie Tatiana Churyk and Renata Stenka

Journal of Accounting Education, 2014, vol. 32, issue 4, 58-70

Abstract: This case study exposes students to complex investment transactions. You must document the following: (1) apply the appropriate accounting literature along with its provisions and justify the order of its application; (2) identify and interpret key facts to classify the given investments and relations; (3) discuss the choice of key assumptions that are central to the analysis; (4) interpret the nature of all investment relations with Holdings; discuss all Owner level and below relations; (5) discuss how accounting for varied levels of influence impact the items reported on/off the face of investors' financial statements; (6) from DT's perspective, discuss the potential positives and negatives of its arrangement with Owner with respect to Holdings; and (7) after analyzing additional facts, discuss the nature of the relations of Simon and Herb III with Owner.

Keywords: Variable interest entities (VIE); Consolidation; Subsidiaries; ASC 810 (FIN 46R, SFAS 167); IFRS 10; Joint ventures (ASC 323, IAS 28, IFRS 11); Group accounting; Investments; Accounting education case study (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:32:y:2014:i:4:p:58-70

DOI: 10.1016/j.jaccedu.2014.08.001

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