I am unclear, what does the Acquisition method do to the income statement?
According to Q 12 in reading 21, net income is not affected by accounting method, but in Q 6 in the same reading it appears you add the buyer and the subsidiary income statement items together...作者: comp_sci_kid 时间: 2011-7-13 14:17
correct me if i am wrong but across all 3 methods...dats equity, aquisition n proportionate...ni n equity are not effected ...作者: thecfawannabe 时间: 2011-7-13 14:17
Minority interest is now reported under equity, not liabilities. Thus equity wont be the same under all methods. I assume you're using schweser. Check schweser errata-they made a big mess up of this作者: ayaz_mahmud369 时间: 2011-7-13 14:18
All revenues and expenses are added together. Before your arrive at net income, you deduct the minority share portion of net income, which is total income multiplied by non-controlling interest share of net income.
