KEY TERMS
Note: Definitions for these terms are provided in the glossary at the end of the text.
Affiliate companies (p. 345)
Available-for-sale securities (p. 335)
Business acquisition (p. 348)
Business combination (p. 349)
Comprehensive income (p. 341)
Consolidated financial statements (p. 348)
Controlling interest (p. 348)
Cost method (p. 343)
Equity investment (p. 333)
Equity method (p. 344)
Fair market value option (p. 348)
Foreign currency translation adjustments (p. 355)
Holding gains or losses (p. 337)
Intention to convert (p. 335)
Level 1 measurements (p. 348)
Level 2 measurements (p. 348)
Level 3 measurements (p. 348)
Mark-to-market rule (p. 336)
Merger (p. 349)
Noncontrolling interest (p. 359)
Parent company (p. 348)
Readily marketable (p. 334)
Realized gains/losses (p. 337)
Special purpose entities (SPEs) (p. 353)
Special purpose vehicles (p. 353)
Statement of Recognized Income and Expense (SORIE) (p. 341)
Subsidiary (p. 348)
Trading securities (p. 335)
Unrealized gains/losses (p. 337)
Unrealized price changes (p. 339)
ETHICS in the Real World
The takeover battle for Gerber Products Co. included bids by a number of U.S. companies, including Quaker Oats (now part of PepsiCo), which entered a bid of $35 per share. Swiss drug giant Sandoz Ltd. won the battle quickly, however, by raising the ante to $53 per share. Some investment bankers claimed that the favorable accounting treatment for acquisitions practiced in Switzerland gave Sandoz the advantage it needed to utbid ...
Get Financial Accounting: In an Economic Context now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
