Then Equity = A + B (point to note is that retained earnings wouldn't get aggregated).
also you don't subtract cash from equity, cash would hit cash ac separately, and your assets would go down, but so would your NI.
if bought for new Equity
Then Equity = A + 500 + B.
someone pls confirm.作者: Kapie 时间: 2011-7-13 13:49
Ignore the above post i think the answer is
In all-cash transaction
No change to acquirer's equity.
In all-equity transaction
date of acquisition: Equity = Old Equity + MV of the equity issued.
post acquisition reporting: Equity = Equity on date of acquisition + Target's Retained earnings.作者: giants2010 时间: 2011-7-13 13:49
thanks pepp.
if offered by cash, Parent as well as consolidated b/s will show a decrease in cash. no change to equity.
for stock offers, parent+consolidated all increase equity by the amount raised.
for ownership less than 100%, don't forget to increase equity by NCI in equity.
