If its cash settlement, the answer is easy. When consolidating ballance sheet, the intercorp transaction will be deducted from total asset. What if company A purchase 75% of company B issuing new shares, will total asset after consolidation still be deducted by the market value of the shares? Will total equity after consolidation differrent when using differrent purchase method?
take a look at example 8 p 135 in CFAI text
OK, they are differnt, because newly raised equity. thanks