Module I· Consolidation & Equity MethodIntermediate
Question
How do you treat the purchase of additional shares, for example from 60% to 80%?
Answer
Additional purchases after control is already obtained are equity transactions: no new goodwill, no P&L gain/loss, and NCI is reduced.
Deep diveShow more details
Do not treat 60% to 80% as a new business combination. Control was already present.