совершенствование потребительских свойств продуктов
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When a partially-owned subsidiary sells to a parent company, there are two acceptable approaches under ASC 810-10-45-18 to attributing the elimination of the intercompany profit or loss. The elimination of intercompany profit or loss may either be fully attributed to the controlling interest, or attributed proportionately between the controlling and noncontrolling interests. Under the full attribution approach, net income attributable to the parent is charged for the entire intercompany income, including the noncontrolling interest's share. This approach is less complex in application and is based on a view that the parent controls the sale and should eliminate the entire sale in its accounting. However, some believe that the full attribution of the elimination of the intercompany profit made on a sale by a partially-owned subsidiary to its parent understates net income attributable to the parent by the share of intercompany income earned from sale to the NCI. The attribution of the intercompany income elimination proportionately between the parent and noncontrolling interests reflects the net income earned by the parent for its share of intercompany net income earned to the extent of outside interests. However, it has the disadvantage in consolidated financial statements of understating the equity of the NCI in net assets of the subsidiary by the amount of profit remaining in the parent's assets (i.e., inventory) attributable to the noncontrolling interest of the selling subsidiary. Further, this approach cannot be applied when consolidating a VIE as described in ASC 810-10-35-3. See CG 8.2.1 for further information. In situations in which a partially-owned subsidiary sells to a wholly-owned subsidiary, the wholly-owned buying subsidiary should be regarded as the parent entity and the same guidance as discussed above should be applied in the parent's consolidated financial statements. In situations in which a partially-owned subsidiary sells to a partially-owned subsidiary, the entire amount of intercompany profit must be eliminated in arriving at consolidated net income. The amount of the intercompany profit elimination attributed to the NCI should be determined consistently with the approach adopted by the entity for sales to the parent.A "cost company" is a joint venture formed to serve as a source of supply in which the venturers agree to take production of the investee proportionate to their respective interests. This is substantially a cost-sharing arrangement, and the existence of an outside interest does not increase cost of supplies to the consolidated entity. For this reason, the intercompany income elimination is required to be attributed entirely to the parent.Example CG 8-2 demonstrates the two different approaches of attributing the elimination of intercompany profit or loss.EXAMPLE CG 8-2Partially-owned subsidiary sells to parent – two approachesAt the beginning of the year, Company A purchases a 60% interest in Company B for $120. At that time, the fair value of Company B's net assets is $200, and the fair value of the NCI is $80. Company B's total capital is $200. During the year, Company B sells goods to Company A that are in Company A's inventory at year end. The transaction resulted in a profit to Company B as follows:, Intercompany loans are made from one legally separate business unit to another within the same corporate family. They offer a flexible, cost-efficient alternative to other forms of capital infusion, such as private investments, bank loans or stock offerings., At the beginning of the year, Company A purchases a 60% interest in Company B for $120. At that time, the fair value of Company B's net assets is $200, and the fair value of the NCI is $80. Company B's total capital is $200..
Guide to Intercompany Loans & their definition. Here we discuss challenges, examples, & how intercompany loans work, with reasons and uses., Intercompany loans allow surplus cash from one entity to be used by another entity that needs funding, improving overall liquidity management. This internal borrowing can reduce the need for expensive external financing., Understanding intercompany loans Definition and scope. At its core, an intercompany loan is a transaction where one branch, subsidiary, or affiliate of a company group lends funds to another. These are internal transactions, meaning they stay within the group’s umbrella., Intercompany accounting refers to transactions that occur between related legal entities within the same corporate group. These transactions need to be accurately recorded to ensure that the consolidated financial statements are correct., Intercompany loans provide fast, flexible capital for subsidiary expansions, research and development (R&D), or capital expenditures without the delays or restrictions of external financing. This helps you execute strategic priorities without waiting for third-party financing., Explore the nuances of managing intercompany debt, including accounting practices, tax implications, and financial statement impacts. Intercompany debt is a significant aspect of corporate finance, particularly for multinational corporations with complex structures..