rob2741
Jan 13, 2008, 12:01 PM
Why do consolidated financial statements become increasingly important when the purchase differential is very large
delite
Jan 19, 2008, 12:11 AM
Why do consolidated financial statements become increasingly important when the purchase differential is very large
When a parent company has equity ownership in a company, financial and tax regulations- dictate how to report such equity- a related company, for example ownership of 80% or more of another corp, requires the parent to file a consolidated tax return with its subsidiary. As the percentage drops, various rules dictate how to report equity in an affiliate.