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March 18, 2026The Accounting Review

The Treasury Stock Method and Conventional Method in Reciprocal Stockholdings - An Amalgamation: A Comment.

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Authors

RCRaymond S. ChenCalifornia State University, Northridge

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Implication

Comment critiques methods of reporting net income allocations for controlling and minority interests.

Key Points

  • The aim is to analyze and critique the allocation methods for controlling and minority interests in consolidated financial statements.
  • Reviewed previous literature on allocation methods published in 1974.
  • Critically evaluated the treasury stock method in reciprocal stockholding.
  • Highlighted flaws in alternative models for reporting net income.
  • Found that the treasury stock method understates minority interest.
  • Demonstrated that previous models for allocating consolidated net income were improperly constructed.
  • Emphasized inefficiencies in communicating effective earnings per share for minority interests.

Cite This Study

Raymond S. Chen (1975) studied this question.

synapsesocial.com/papers/69ba420a4e9516ffd37a1f1dhttps://doi.org/10.2308/tar-4506170
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The Treasury Stock Method and Conventional Method in Reciprocal Stockholdings - An Amalgamation: A Reply.1975
  2. 2The Treasury Stock Method and Conventional Method in Reciprocal Stockholdings -- An Amalgamation.1974
  3. 3THE ALLOCATION OF COMBINED NET INCOME IN RECIPROCAL AFFILIATIONS.1961
  4. 4Reciprocal or Mutual Holdings: Allocating Earnings and Selecting the Accounting Method.1973
  5. 5Equity Accounting for Reciprocal Stockholdings.1988 · 1 citations