CFAI Text: Reading 21 - Q3
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. |