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Summary Where were the intangible assets on the parent or subsidiary's balance sheets? On the p
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  • Grado
  • ACC 205
  • Institución
  • Ashford University

Where were the intangible assets on the parent or subsidiaryWhere were the intangible assets on the parent or subsidiary's balance sheets? On the parent's balance sheet embedded in the equity investment account. On the subsidiary's balance sheet, each intangible asset is listed. On the parent...

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Información del documento

  • 13 de octubre de 2024
  • 2
  • 2024/2025
  • Resumen

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  • where were the intangible assets on the parent or
  • each intangible asset is listed on the parents
  • each intangible asset is listed on the consolidat

Escuela, estudio y materia

  • Ashford University
  • ACC 205
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Where were the intangible assets on the parent or subsidiary's balance sheets?

On the parent's balance sheet embedded in the equity investment account. On

the subsidiary's balance sheet, each intangible asset is listed. On the parent's

balance sheet embedded in the equity investment account. After the

consolidation process is complete, each intangible asset is listed on the

consolidated balance sheet. On the subsidiary's balance sheet embedded in

retained earnings. After the consolidation process is complete, each intangible

asset is listed on the consolidated balance sheet.




Answer & Explanation


In the context of accounting for intangible assets in a parent-subsidiary

relationship, here's how they are typically reported:


1. On the parent's balance sheet: Intangible assets related to a subsidiary

are often embedded in the equity investment account. This is because,

before consolidation, the parent company records its investment in the

subsidiary as a single line item on its balance sheet.

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