Consoles

Question 1

Consoles vertical groups

H acquires s after s acquired t

Answer 1

In t analysis perform analysis until date h acquired s
The since reserves will be included on the left side of s analysis at acquisition.
Goodwill will also be eliminated by including it on the left side at acquisition.
Consolidate as usual.

Question 2

Consoles vertical groups

H has a portion of t and s has portion of t causing h to control t

Answer 2

In t analysis, include since reserves, gw and investment column for both h and s on right side.
When h acquires control of t there might need to be a fv adjustment to pl and investment.

Question 3

Consoles vertical groups

H acquires s before s acquired t

Answer 3

Do analysis for t first because it’s furthers away.
Since it was acquired after h got s it is not included in at acquisition.
Include a re column for t on left side of s analysis.
Since reserves from t analysis will be included in left side of s analysis
Both good wills will be recorded