Accounting - The Meaning of Control Exerted By Controlling Entity Over Its Subsidiaries - Assignment Example

This review of performance of the company is a detective type of control because it “detects undesirable acts” (Ucop.... Another important type of control practiced by one's organization is the quality control.... Another important form of control practiced by one's organization is behavioral control.... It is therefore necessary that inventory control is implemented by the store because it says something about its reliability....

CFR Analysis Report Table of Contents Part A 4 Introduction 4 Investment 4 Regulatory framework 5 Part B 5 Cash generation units 5 Impairment of assets 6 IAS 36 Impairment of assets 6 Financial instruments 7 Managing risks 7 Principal risk and effects 8 Hedge Accounting 9 Post employment obligations 10 Scheme assets 11 Part C 12 Conclusion 12 References 14 Part A Introduction Burberry Group plc and its subsidiaries, the “Group” is a British luxury fashion house which distributes fashion accessories and clothing and licensing fragrances....

(Fortune 500, 2007) Groups are treated as a single entity for the purpose of showing the financial position of the range of companies including parent (holding) company, its subsidiaries, associated companies and other investments such as joint ventures.... During the year, the parent company can use the equity or the cost method to account for its investment in the subsidiary.... hrough a cash flow statement, a company can determine its short-term sustainability based on how the liquid the company is....

hellip; The price of the company's stock should be affected by its quality of internal control system.... This paper discusses the internal control over financial reporting and the integrated audit in two large companies such as Ford Motor Company and Toyota Motor Corporation, what disclosure controls they use, why they are important and how they affect on company's stock price.... The editing paper "Internal Control over Financial Reporting" talks about the internal control over financial reporting and performing an integrated audit of Ford Motor Company and Toyota Motor Corporation....

CSL Limited is headquartered in Melbourne, Australia and the subsidiaries of CSL Behring has its operations spread over several countries like Australia, US, Germany and Switzerland.... The group accounts reveal that CSL has subsidiary companies… ugh which it carries out its business operations in the areas of blood-plasma derivatives, anti-venom, vaccines and cell culture used in research of genetic field of medicine (CSL Global, 2014, p.... The group accounts also reveal that CSL Limited carries out research and development to support its global operations....

This is because the BP company has operational control over an all its operations since one of its subsidiaries, the parent company is able to direct the financial and operating regulations of the company with an aim to gain economically from its operations.... The environmental report can be used by anybody concerned to analyze the company's performance, as well as view its progress in the respective year.... That is, what the company heard from its shareholders and how it is responding to their sentiments....

The parent first allocates goodwill to its controlling interest for the excess of the fair value of the parent's equity interest over its share of the fair value of the net identifiable assets.... lthough most parent companies do possess 100 percent ownership of their subsidiaries, a significant number establish control with a lesser amount of stock.... onsolidated Net IncomeIn the absence of transactions among the consolidating companies, consolidated net income is equal to the parent's income from its own operations, excluding any investment income from consolidated subsidiaries (Ittelson, 2009), plus the net income from each of the consolidated subsidiaries, adjusted for any differential write-off....

By the norm of business practice, there may be portions of the subsidiary's stock that may not be owned by the parent company and thus not part of the controlling interest of the parent corporation.... Such non-controlling interests are referred to as minority interest of the… In several accounting contexts, the minority interest and goodwill of the company are discussed hand-in-hand due to the similarities they offer to the parent company.... The similarity here is that in both cases, the parent company does not have direct control of what the asset manoeuvring of these two but the two are reported on the consolidated balance sheet of the parent company as a means of reflecting the claim of assets to the company and other non-controlling shareholders (Chaney, Mead & Schermann, 2002)....