Using the financial statements of your company (or companies), addresses the following questions: *What GAAP principles govern the consolidation of financial statements? *How are consolidated and equity methods of accounting different? *What investments has the company made in affiliated companies? Examine its footnotes. *Comment on the accounting for investments in affiliated companies after looking at the footnotes. *List the investments it has. *Does it use cost basis or equity method of accounting, or both? *When do you use the equity method of accounting? *Goodwill is the difference between the acquired assets and acquired liabilities. (Find a company that has goodwill). Examine the balance sheet and the footnotes. What is the goodwill related to? *What FASB covers the reporting and accounting of goodwill? *What is the difference between old goodwill reporting and new goodwill reporting?
