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NEW QUESTION: 1
Galena Petrovich, CFA, is an analyst in the New York office of TRS Investment Management, Inc.
Petrovich is an expert in the industrial electrical equipment sector and is analyzing Fisher Global. Fisher is a global market leader in designing, manufacturing, marketing, and servicing electrical systems and components, including fluid power systems and automotive engine air management systems.
Fisher has generated double-digit growth over the past ten years, primarily as the result of acquisitions, and has reported positive net income in each year. Fisher reports its financial results using International Financial Reporting Standards (IFRS).
Petrovich is particularly interested in a transaction that occurred seven years ago, before the change in accounting standards, in which Fisher used the pooling method to account for a large acquisition of Dartmouth Industries, an industry competitor. She would like to determine the effect of using the purchase method instead of the pooling method on the financial statements of Fisher. Fisher exchanged common stock for all of the outstanding shares of Dartmouth.
Fisher also has a 50% ownership interest in a joint venture with its major distributor, a U.S. company called Hydro Distribution. She determines that Fisher has reported its ownership interest under the proportioned consolidation method, and that the joint venture has been profitable since it was established three years ago. She decides to adjust the financial statements to show how the financial statements would be affected if Fisher had reported its ownership under the equity method. Fisher is also considering acquiring 80% to
100% of Brown and Sons Company. Petrovich must consider the effect of such an acquisition on Fisher's financial statements.
Petrovich determines from the financial statement footnotes that Fisher reported an unrealized gain in its most recent income statement related to debt securities that are designated at fair value. Competitor firms following U.S. GAAP classify similar debt securities as available-for-sale.
Finally, Petrovich finds a reference in Fisher's footnotes regarding a special purpose entity (SPE). Fisher has reported its investment in the SPE using the equity method, but Petrovich believes that the consolidation method more accurately reflects Fisher's true financial position, so she makes the appropriate adjustments to the financial statements.
Regarding the prior purchase that was accounted for under the pooling of interests method, had Fisher Global reported this purchase under the acquisition method:
A. reported goodwill could be less depending on the fair value of the identifiable assets and liabilities compared to their book values.
B. balance sheet assets and liabilities of the purchased firm would have been reported at fair value.
C. the assets and liabilities of the purchased firm would not be included on Fisher's balance sheet.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The assets and liabilities of the purchased firm are included on the balance sheet of the acquiring firm under either method. Under the pooling method, there is no adjustment of balance sheet asset and liability values to their fair values. Under the acquisition method, assets and liabilities acquired are reported at fair value at the time of the purchase. There is no goodwill reported under the pooling method; the purchase price is not reflected on the balance sheet of the acquiring firm. (Study Session 5. LOS 21.a)

NEW QUESTION: 2
Which method is supported for backing up the virtual machine that contains vCenter
Server?
A. full image
B. differential
C. individual disks
D. incremental
Answer: A

NEW QUESTION: 3
When choosing a journal for a CG what would be a factor in selecting which LUNs to use?
A. Volumes masked to the production host
B. Only thin LUNs
C. Any volume less than 10 GB
D. Volumes that are all close to the same size
Answer: D

NEW QUESTION: 4
When designing an upstream API and its implementation, the development team has been advised to NOT set timeouts when invoking a downstream API, because that downstream API has no SLA that can be relied upon.
This is the only downstream API dependency of that upstream API.
A. Assume the downstream API runs uninterrupted without crashing. What is the impact of this advice?
B. An SLA for the upstream API CANNOT be provided
C. The invocation of the downstream API will run to completion without timing out
D. A default timeout of 500 ms will automatically be applied by the Mule runtime in which the upstream API implementation executes
E. A toad-dependent timeout of less than 1000 ms will be applied by the Mule runtime in which the downstream API implementation executes
Answer: D