Equity under Equity Method vs Consolidation Method investment, subsequent, reporting, example, someone

SkipE99

This is the most confusing of all topics, Can someone clearly go through a small example.

Scenario 1: A cash buyout

1a) Equity (Equity method) = Not affected = same before the investment as is after the investment
1b) Equity (Consolidation Method- using full goodwill) = ??
1c) Equity (Consolidation Method - using partial goodwill)

For 2b, and 2c: explain what happens to pre & post minority interests/ retained earnings on the date of acquisition and for subsequent reporting.


Scenario 2: Issue more capital to buy

2a) Equity (Equity method) = Not affected = same before the investment as is after the investment
2b) Equity (Consolidation Method- using full goodwill) = ??
2c) Equity (Consolidation Method - using partial goodwill) = ??

For 1b, and 1c: explain what happens to pre & post minority interests/ retained earnings on the date of acquisition and for subsequent reporting.

I am willing to give someone a phone call / Chat msg if you can explain me this.

Thank you very much!



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 03:44PM by pepp.

CPATrader

the 1b&1c&2b&2c are switched in the above statement
"For <1b, and 1c>: explain what happens to pre & post minority interests/ retained earnings on the date of acquisition and for subsequent reporting.