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    TURKMONK's Avatar
    TURKMONK Posts: 1, Reputation: 1
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    #1

    May 22, 2008, 11:58 AM
    What is the term differential used to indicate?
    I am studying acquisitions. And the instructor is asking What is the term differential used to indicate?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 22, 2008, 09:27 PM
    Can you be more specific? What type of acquisitions? (Remember that you're asking this out of the blue, out of context.)
    Count Du Moneah's Avatar
    Count Du Moneah Posts: 3, Reputation: 1
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    #3

    Jul 20, 2008, 02:08 PM
    The term differential is used to indicate the difference between the cost of the investment as recorded on the parent's books and the book value of the shares acquired based on the stockholders' equity accounts of the subsidiary.
    Motherof2plus3's Avatar
    Motherof2plus3 Posts: 2, Reputation: 1
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    #4

    Sep 15, 2008, 07:50 AM
    Comment on Count Du Moneah's post
    Per my Advanced Financial Accounting textbook the answer is correct.
    Motherof2plus3's Avatar
    Motherof2plus3 Posts: 2, Reputation: 1
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    #5

    Sep 15, 2008, 07:52 AM
    A differential indicates the difference between the cost of the investment recorded on the parent's books and the book value of the shares acquired on the subsidiary's books.
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