Documente Academic
Documente Profesional
Documente Cultură
O2
R4
A4
L4
S3
O - Ordinary Shares
Ordinary shares before merger (Parent)
Newly issued shares
Ordinary shares at date of acquisition
xxx
xxx
xxx
R - Retained Earnings
RE before merger (Parent)
Gain on acquisition
Acquisition related costs
Cannot absorb (stock issuance costs
Retained earnings at date of acquisition
xxx
xxx
(xxx)
(xxx)
xxx
A - Assets
Assets before merger (Parent) at book value
Assets before merger (Subsidiary) at fair value
Cash paid by acquirer
Goodwill
Assets at date of acquisition
xxx
xxx
(xxx)
xxx
xxx
L - Liabilities
Liabilities before merger (Parent) at book value
Liabilities before merger (Subsidiary) at fair value
Contingent consideration liability
Unpaid transactions
Liabilities at date of acquisition
S - Shareholder's Equity
Share Premium before merger
Newly issued shares
Absorbable stock issuance costs
Shareholder's equity at date of acquisition
xxx
xxx
xxx
xxx
xxx
xxx
xxx
(xxx)
xxx
Separate FS
How parent records Investmen
Cost method
1) Purchase Price
Inv. In S
Cash
2) Profit sharing
3) Dividend Income
xxx
xxx
No Entry
Cash
xxx
Dividend Income
xxx
(xxx)
xxx
(xxx)
Separate FS
w parent records Investment in S
Consolidated Retained
Equity method
Inv. In S
Cash
xxx
Inv. in S
xxx
Income from Inv.
Cash
Inv. In S
xxx
x controlling interest
Retained Earnings, Parent, 12/31/17 (equity method)
Subsidiary
xxx
NC
x/(x)
(xxx)
xxx
(xxx)
1
10
(xx)
xx
Conso NI
NCI in NI
(1x.2)
To parent
d Retained Earnings
Consolidated Sha
xxx
xxx
(xxx)
xxx
xxx
(xxx)
xxx
xxx
(xxx)
(xxx)
xxx
xxx
(xxx)
xxx
(xxx)
(xxx)
xxx
x%
xxx
xxx
NCI
E Date of acquisition
et Income to present
vidends to present
at Present
n of allocated excess
s Equity of Subsidiary
partial goodwill)
n Full Goodwill
xxx
xxx
xxx
(xxx)
xxx
xxx
xxx
(xxx)
xxx
x%
xxx
xxx
xxx