WEEK 13. Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100%

Presentasi berjudul: "WEEK 13. Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100%"— Transcript presentasi:

1 WEEK 13

2 Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100% 20% 20% 0% 0% 50% 50%

3 Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100% 20% 20% 0% 0% 50% 50% With less than 20% ownership the buyer does not usually have significant influence. The buyer uses the cost method to account for the investment.

4 Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100% 20% 20% 0% 0% 50% 50% Ownership over 20% usually indicates significant influence. The buyer uses the equity method to account for the investment. Ownership over 20% usually indicates significant influence. The buyer uses the equity method to account for the investment.

5 Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100% 20% 20% 0% 0% 50% 50% The corporation owning all or a majority of the voting stock is called the parent company. The controlled corporation is the subsidiary company. Consolidated financial statements are prepared which combinine the operating results of the two entities.

6 Long-Term Stock Investments Equity Method Cost Method Not significant influence Significant influence Ownership % Controlling Interest 100% 100% 20% 20% 0% 0% 50% 50%

7 COST METHOD 1 April Risa membeli 100 lembar saham PT. Bermuda, 6%, nominal Rp 10.000,-/lbr dg kurs 105. Biaya pembelian saham Rp 50.000. Dividen dibayarkan setiap 31 Des. Pada tgl 31 Des, harga saham tersebut dipasaran senilai Rp 10.200/lbr Buatlah jurnal untuk mencatat transaksi diatas!

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9 TGLDEBITKREDIT 1 AprilInvestasi (saham PT.Bermuda)1.100.000 Pendapatan dividen15.000 Kas1.115.000 31 DesKas60.000 Pendapatan Dividen60.000 Investasi (saham PT. Bermuda)20.000 Laba blm direalisasi20.000

10 DateDescriptionDebitCredit DateDescriptionDebitCredit Equity Method Investasi saham ( Brock Corp. )350,000 Kas 350,000 Investasi saham ( Brock Corp. ) 42,000 Pendapatan investasi Brock Corp.42,000 Kas18,000 Investasi saham ( Brock Corp. ) 18,000 Jan. 2 Membeli 40% kepemilikan saham dari Brock Corporation senilai $350,000. Brock Corporation melaporkan laba sebesar $105,000. Dec. 31 Brock Corporation membagikandividend sebesar $45,000. Dec. 31