标题: Equity under Equity Method vs Consolidation Method [打印本页] 作者: SkipE99 时间: 2011-7-13 15:58 标题: Equity under Equity Method vs Consolidation Method
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.作者: CPATrader 时间: 2011-7-13 15:58
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.
