Guys, I have a couple of questions regarding M&A and I was wondering if you guys have any insights to this.
Suppose Company X acquires 10% of Company Y - how is this reflected in the financial statements of Company X?
What if Company X acquires 40% of Company Y instead?
I know that in cases where Company X acquires >50% of Company Y we go into minority interest, but what if it is less?
Thanks!!
| +69 | Wealthy Parents / Jaded | 22 | 17h |
| +48 | How are hours rn for SA (interns) | 29 | 5h |
| +45 | Venezuela Debt Restructuring - LAZ vs CVP | 20 | 4h |
| +40 | Background check issue IB Full Time | 23 | 17h |
| +36 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 8 | 1h |
| +30 | Boutique firm wants access to my LinkedIn? | 13 | 9h |
| +27 | Investment Banking in Mexico | 7 | 1d |
| +25 | MM bottom bucket bonus | 9 | 2d |
| +24 | UBS GIG, LevFin, FSG Interns working Sundays and 85 hour weeks their first week? | 12 | 13h |
| +21 | Excel macros for QOL formatting | 0 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Google > CFA Level 2 Financial Reporting & Analysis > Intercorporate Investments (this is an example: http://takloo.wordpress.com/2011/02/13/how-to-account-for-intercorporat…)
The accounting method used depends primarily on the degree of control/influence and level of ownership.
If it's less than 50%, the income is not consolidated in the Company's financials and is reflected in the equity income line.
Esse consequatur nulla qui quis. Fugiat sint earum quia dolores hic.
Qui minus nemo earum. Quo exercitationem labore recusandae qui. Est culpa nihil alias repellat. Sed explicabo non corrupti cumque quia consequatur. Ut ut dolorem suscipit maxime culpa.
Accusamus ab perspiciatis rerum et eaque cumque aut. Tempora nobis reiciendis optio doloremque aut amet sit. Est hic sint molestiae. Dolores voluptas molestiae eos.
Non quae tempora error tenetur. Velit dolores dicta dolor impedit corrupti et reiciendis. Enim modi velit praesentium sit aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...