标题: Equity Method and the Contra Asset Created [打印本页] 作者: skycfa 时间: 2013-4-16 09:49 标题: Equity Method and the Contra Asset Created
I have a note that reads:
Using the equity method to account for a stake in anohter company, WHEN ACQUIRED WITH CASH, results in a decrease in current assets in the amount of cash and a contra-asset to be created, thus leaving assets UNCHANGED.
- I get what it’s saying, no problem. HOWEVER, are Current Assets left unchanged? I know for Prop/Full Consolidation you have to decrease cash which reduces the current ratio.
