This technical note introduces the key theories and methodologies of accounting for intercorporate investments, which occur when one firm acquires debt or the equity of some other firm. The accounting fundamentals are discussed for three investment groups:
(1) Investments that are passive, where impact is either little or not available; (2) investments in associates, where significant influence is present and (3) investments in subsidiary companies, where control is not absent. The note addresses the equity method of accounting for associates. For subsidiaries, the note discusses the idea of control, the allocation of a purchase price and acknowledgement of consolidation, goodwill and goodwill damage.
PUBLICATION DATE: August 21, 2015 PRODUCT #: W15360-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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