标题: FSA: 80% investment in associate and control [打印本页] 作者: dvilayphet 时间: 2011-7-11 19:18 标题: FSA: 80% investment in associate and control
I remember we will use consolidate method, and it is 100% consolidate, but why I have impression in some question , we use 80% ratio to combine B/S and I/S. I could find out more detail, but before I spend time search , any body have any quick idea? Thanks.作者: Otabek 时间: 2011-7-11 19:18
There is a comprehensive illustration solved on Scheweser to reflect the impact on financials due to use of different methods. In practice equity will only be for 20-50% stake unless there exist some special situations detailed by Guille_GE. thanks.作者: tarunajwani 时间: 2011-7-11 19:18
OP's question is why sometimes you consolidate less than 100% of the assets and liabilities, *after* you have decided it is to be consolidated. This happens with the pooling method, which is no longer used. I don't think there is less than 100% consolidation anymore....anyone confirms?作者: SpyAli 时间: 2011-7-11 19:18
Yeah I don't really get/remember the pooling method....
Also I think the accounting rules used to have that "bright-line" rule of 20-50% or over 50%, but now it's more based on if you actually have influence (equity method) or control (consolidation), any thoughts?作者: Houjichasan 时间: 2011-7-11 19:18
yessir, control that minority interest作者: maryli 时间: 2011-7-11 19:18
AndrewUNH Wrote:
-------------------------------------------------------
> That's correct Dreary, you are consolidating the
> whole 100% even though you don't really own 100%,
> therefore that "minority interest" shows up as the
> % that the minority shareholders own.
I can't believe you still don't get the question! He is asking why (sometimes) you only consolidate 60% or 70% or 80%, and not 100%. Let us say company X buys 60% of company Y. Consolidation means you take 100% of company Y's assets and liabilities and merge them into X's. However, there are cases when you only take 60% of company Y's assets and liabilities and merge them into X's.作者: chandsingh 时间: 2011-7-11 19:18
