When a parent company applies the initial value method or the partial equity method to an investment,
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Question:
When a parent company applies the initial value method or the partial equity method to an investment, a worksheet adjustment must be made to the parent's beginning Retained Earnings account (Entry *C) in every period after the year of acquisition. What is the necessity for this entry? Why is no similar entry found when the parent utilizes the equity method?
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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