Help! Purchase vs Pooling vs Aquisition vs Consolidation !

CFA Level II
#1

I am getting very confused with these terms: I am correct, can someone please clear this out. If I have a controlling interest in an associate I have to consolidate our financial statements. I have to show goodwill if I pay a premium I can elect to show partial good will or full goodwill? If there is a business combination then we have to combine both of our financial statements. So now only one exists? And I can elect to show partial goodwill or full goodwill? So essentially whats the difference between consolidation and purchase method when I am looking at the investors BS? What’s the difference between Acquisition and and purchase methods? Can someone please help me clear this out? Thank you

#2

To be more specific I am unclear about purchase vs acquisition vs consolidations when I would be looking at the financial statements of the investor

#3

purchase method = acquisition method = control method = consolidation method be careful though, there is consolidation (purchase method) and proportionate consolidation, which is a joint venture IFRS

#4

We do not have to know purchase method anymore. They did away with that. Thank god. Just gotta know pooling, prop consolidation, consolidation and full & partial goodwill methods (when acquiring less then 100%)

#5

Thanks JP, I have one follow up question: How is consolidation method is different than partial goodwill method?