Question: Assuming that A acquired a controlling interest in B through numerous small acquisitions, what would be appropriate accounting with respect to these acquisitions? An acquisition
Assuming that A acquired a controlling interest in B through numerous small acquisitions, what would be appropriate accounting with respect to these acquisitions? An acquisition differential must be computed following each purchase. The equity method must be adopted retroactively once 20% ownership is obtained. The purchases should all be grouped together and treated as a single block purchase. The cost method should be used until a controlling interest is acquired
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