Step acquisition Non control to control. CPA Exam

[@kevinbarnes5185]

Thanks for this. But why did you record amortization when you own 30%? That is equity method. There is no amortization when you do equity method. The investment changes only by div and share of loss. Was that an error? Please explain

[@GordonTamf35]

True, i don't understand this part too.

[@niftyvidy]

More importantly, when you move from equity accounting for an associate to control, you would no longer apply the equity method. Not sure why he revalues the investment at year end when you would be required to derecognize the investment and fully consolidate the financial results of your new subsidiary.

[@jitendersharma7819]

Superb

[@AccountingLectures]

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