It was my understanding (based on Schweser readings) that the shoareholder’s equity is independent of the consolidation method used for reporting purposes.
In this question, a firm is increasing its share from 19% to 50% using cash. The question asks to pick “level of influence” that will produce highest shareholder’s equity (answer is “deemed to have control”)
I don’t get it. Please help.作者: badonkus 时间: 2013-4-8 15:45
Consolidation (Acquisition Accounting, or formerly “Purchase” Accounting) is highest equity because as Northeastern said, non-controlling interest (the portion of equity that has been consolidated but the consolidating company does not own) is included in Equity.
