高级财务会计PPT2.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * The Equity Method Purchases of additional shares If the equity method was being used to account for shares already held, the acquisition involves adding the cost of the new shares to the investment account and applying the equity method from the date of acquisition forward New and old investments in the same stock are combined for financial reporting purposes Purchases of Additional Shares ABC Company purchases 20 percent of XYZ’s common stock on January 2, 20X1, and another 10 percent on July 1, 20X1, and the stock purcha