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There are TWO cases. – need 2 pages on each topic Case I: The FASB ASC paragraph

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There are TWO cases. – need 2 pages on each topic
Case I:
The FASB ASC paragraph 810-10-45-16 states: “The noncontrolling interest shall be reported in the consolidated statement of financial position within equity, separately from the parent’s equity. The amount shall be clearly identified and labeled, for example, as noncontrolling interest in subsidiaries.”
However, prior to issuing this current reporting requirement, the FASB considered several alternative display formats for the noncontrolling interst. Access the precondification standard, SFAS 160, “Noncontrolling Interest in Consolidated Fianncial statements.”
Instruction:
Check www.fasb.org to answer the following:
a) What alternative financial statement display formats did the FASB consider the noncontrolling interest?
b) What criteria did the FASB use to evaluate the desirability of each alternative?
c) In what specific ways did FASB Concept Statement 6 affect the FASB’s evaluation of these alternatives?
Case II:
P Company agrees to pay $20 million in cash to the former owners of S, Inc., for all of its assets and liabilities. These former owners of S developed and patented a technology for real-time monitoring of traffic patterns on the nation’s top 500 frequently congested highways. P Co. plans to combine the new technology with its existing global positioning system and projects a resulting substantial revenue increase.
As part of the acquisition contract, P Co. also agrees to pay additional amounts to the former owners upon achievement of certain financial goals. P Co. will pay $8 million to the former owners of S Inc. if revenues from the combined system exceeds $100 million over the next three years. P Co. estimates this contingent payment to have a probability adjusted present value of $4 million.
The former owners have also been offered employment contracts with P Co. to help with system integration and performance enhancement issues. The employment contracts are silent as to service periods, have nominal salaries similar to those of equivalent employees, and specify a profit sharing component over the next three years (if the employees remain with the company) that P Co. estimates to have a current fair value of $2 million. The former owners of S say they will stay on employees of P Co. for at least three years to help achieve the desired financial goals.
Instruction:
Do some analysis and research, in your opinion, should P Co. account for the contingent payments promised to the former owners of S as consideration transferred in the acquisition or as compensation expense to employees?

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