Control over a subsidiary was assumed to have been achieved through a single transaction. Obviously, Boeing's takeover of Alsalam shows that a combination also can be the result of a series of stock purchases. These step acquisitions further complicate the consolidation process. The financial information of the separate companies must still be brought together, but varying amounts of consideration have [...]
In this article we will discuss about:- 1. Consolidation the Effects Created by the Passage of Time 2. Investment Accounting by the Acquiring Company 3. Subsequent Consolidation—Investment Recorded by the Equity Method 4. Subsequent Consolidation Investment Recorded Using Initial Value or Partial Equality Method 5. Contingent Consideration 6. Push-Down Accounting. Contents: Consolidation the Effects Created by the Passage of Time [...]
We will now concentrate on the mechanical aspects of the consolidation process when an outside ownership is present. More specifically, we examine consolidations for time periods subsequent to the date of acquisition to analyze the full range of accounting complexities created by a noncontrolling interest. As indicated previously, this discussion centers on the acquisition method as required under generally accepted [...]