Revenue & Net income calculation in Equity and Consolidation
If company P acquired 50% of company C, how are Revenue & NI calculation done under Equity method and Consolidation method on the acquisition date? (say on the acquisition/investment date, P itself has Rev $500, and NI $100, and C has Rev $300 and NI $50)
My way would be:
Equity method: 500+50%*300 =650 (REV) and 100+50*50% = 125 (NI);
Consolidation method: 500+300 = 800 (REV) and 100+50=150 (NI)
I know I am wrong at some of these calculations, for example, Schweser says “NI is the same under these methods”. I’m mainly using the textbook, would love to see some evidence/quote from the textbook if anyone can help me point out - I didn’t find any.
Thanks! |
发表于 2013-4-28 09:51
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