Reporting Business Combinations, Consolidations, and Foreign Operations

This chapter covers one of the densest technical areas in BAR. The material requires you to separate acquisition accounting, consolidation structure, and foreign-currency effects while still keeping the overall reporting objective clear.

In This Chapter

• Acquisition versus Asset Purchase Accounting explains the initial distinction that drives recognition and measurement.
• Variable Interest Entities and Noncontrolling Interests covers complex control and ownership issues in consolidation.
• Foreign Currency Translation and Remeasurement explains how foreign operations affect reported amounts.
• Complex Consolidation Eliminations and Disclosures focuses on advanced consolidation mechanics and presentation.

How to Use This Chapter

• Read this chapter after strengthening the simpler reporting topics in BAR.
• Focus first on the type of structure or relationship being reported.
• Return here whenever a case combines acquisition, consolidation, and foreign-operation issues in one scenario.

In this section

• Distinguishing Business Combinations from Asset Purchases
  How BAR distinguishes acquisition accounting from asset-purchase accounting.
• Reporting Variable Interest Entities and Noncontrolling Interests
  How BAR evaluates control, consolidation, and ownership issues involving VIEs and noncontrolling interests.
• Translating and Remeasuring Foreign Currency Balances
  How BAR handles foreign-currency translation and remeasurement under different functional-currency scenarios.
• Preparing Complex Consolidation Eliminations and Disclosures
  How BAR handles more advanced consolidation adjustments and disclosure consequences.