I have to quick questions 1.Equity method and consolidation need to have same net income. but equity method takes % net income in investee- dividends paid. Same thing does not happen to consolidation. So my question is under equity the dividends received would come into the income statement in another place right? 2. Am I right when I say that under purchase method you write up the assets of the aquired company only? Thanks
florinpop Wrote: > 1.Equity method and consolidation need to have > same net income. > but equity method takes % net income in investee- > dividends paid. no, that’s how BV gets adjusted, dividends don’t get subtracted from income statement. > Same thing does not happen to consolidation. > So my question is under equity the dividends > received would come into the income statement in > another place right? > 2. Am I right when I say that under purchase > method you write up the assets of the aquired > company only? > Thanks you are right. you write them up to MV
yep I’m an idiot thanks
I’m an idiot too. There are at least two of us now.