When do you use the purchase method instead of the consolidated method? This seems so basic, but I never saw anything that really explained when to use each; they usually just tell you “so-and-so used the purchase method to account for this.” If they don’t say that, and they have purchased between 51-100% of a company, I have assumed it’s the consolidated method.
But You can use the purchase method for less than 100% of a company, so HOW DO YOU KNOW WHEN TO USE THE PURCHASE METHOD? |