Mock exam: Suburban publishers case: for business combination with HiQ Printers, the total shareholder’s equity in suburban’s consolidated financial statements: I checked the solution, why only consider common stock from HiQ Printers, not the retained earnings ? Thanks.
In all-stock transactions, the S/E of the consolidated company should equal the S/E of the parent, plus any NCI.
why not R/E? what if transaction is cash? Thanks. grumble Wrote: ------------------------------------------------------- > In all-stock transactions, the S/E of the > consolidated company should equal the S/E of the > parent, plus any NCI.
You have already factored in the Retained Earnings while calculating the price for the company. Thus, either a stock or cash,retained earnings won’t be added.