|
- UID
- 222296
- 帖子
- 337
- 主题
- 13
- 注册时间
- 2011-7-2
- 最后登录
- 2014-10-26
|
Equity Method and the Contra Asset Created
I have a note that reads:
Using the equity method to account for a stake in anohter company, WHEN ACQUIRED WITH CASH, results in a decrease in current assets in the amount of cash and a contra-asset to be created, thus leaving assets UNCHANGED.
- I get what it’s saying, no problem. HOWEVER, are Current Assets left unchanged? I know for Prop/Full Consolidation you have to decrease cash which reduces the current ratio. |
|
发表于 2013-4-16 09:49
|