Level 2 Reading 19: Intercorporate Investments

MockTurtle

When I first read this chapter it seemed straightforward, but now I'm doing problems and it's extremely confusing! Does anyone have handy points about the salient features of controlling interest, significant influence, equity method of accounting, proportionate consolidation, pooing of interests, full goodwill, partial goodwill?

christine

Hey @shantala, let me know if this table helps:

Ownership	Degree of Influence / Control	US GAAP Method	IFRS Method
Less than 20%	No significant influence	Depends on security classification	Same as US GAAP
20% - 50%	Significant influence	Equity method	Same as US GAAP
Each party owns 50%	Shared control	Equity method	Chocie of equity method or proportionate consolidation
More than 50%	Control	Acquisition	Same as US GAAP

Sophie

Hi @shantala, what aspect in particular? Is there any question that created the confusion? Trying to narrow down the broad question here

MockTurtle

Hi @sophie, I'm trying to sort out which items are included at what percentage for these different methods, and where they are included. I think I'll go through the chapter and try to make a table or something.

Sophie

Ah, give me (or @zee or @christine) 10 min. I'm trying to figure out how to make tables too ">

MockTurtle

Thank you so much @christine!

Sarah

@Sophie did you guys have a competition on who could make a table first

Sophie

Just a little @diya. I blame using 8 fingers to type instead of full 10. My pinkies have zero strength. )

Zee

Obviously I lost. Shouldn't have taught how to use tablizer to @christine...

Sarah

Interesting fact @Sophie but your pinky is not your weakest finger. What is your typing speed? I'm curious...

Sophie

Slow as a tortoise. I ain't no Gen-X speed typer, I'm ancient remember? :P