From this week’s class you need to remember this:
If Parent uses the Equity method, Parent’s Unconsolidated Net Income and Retained Earnings will always equal Consolidated Net Income and Retained Earnings.
The reason this rule holds true
This week we looked at consolidations when the Parent has control but acquires less than 100%. When this occurs there are several things to consider:
1) On the PPDS we must calculate an Implied Value which
This week we looked at our very first consolidation. There are two processes you need to consider, the first being when the acquirer purchases the shares:
1) Perform a PPDS
2) Check if the acquirer has accounted