Hello Sir: In this exercise the chances of achieving the target is less than 50%. So, in this situation can we still book the contingent consideration liability?
I cannot seem to find this anywhere. I am wondering why a deferred tax liability or asset is recognized when an acquisition occurs. For example if equipment is at book value for 10000 for the subsidiary and the fair value is 15000. If tax rate is 30%, then a deferred tax liability of 1500 is recognized. Is the logic that if the equipment is sold, it will result in a taxable gain? Or does it have to do with the depreciation difference between the tax authority and company? Thank you!
I have a question? What happens when the parent invest in the 50% share of a new company with a total of two share holders and the partners have 50/50 rights in exerting control over the new company. In this scenario, should the company be treated as a subsidiary or an associate by the parent?
Then you would use the equity method. In order to consolidate you need at least 50% ownership of the voting stock. Meaning you need 51% ownership while the noncontrolling interest is 49%.
![[Limbus Company - PV] Chapter.7 - Oblivion](http://i.ytimg.com/vi/VUpkXPkvoxU/mqdefault.jpg)
Thanks for this very informative content! Helps a lot!
Hello Sir: In this exercise the chances of achieving the target is less than 50%. So, in this situation can we still book the contingent consideration liability?
Antonmursid🙏🙏🙏🙏🙏✌👌💝🇮🇩🇮🇩🇮🇩🇮🇩🇮🇩✌👌💝
I cannot seem to find this anywhere. I am wondering why a deferred tax liability or asset is recognized when an acquisition occurs. For example if equipment is at book value for 10000 for the subsidiary and the fair value is 15000. If tax rate is 30%, then a deferred tax liability of 1500 is recognized. Is the logic that if the equipment is sold, it will result in a taxable gain? Or does it have to do with the depreciation difference between the tax authority and company? Thank you!
I have a question? What happens when the parent invest in the 50% share of a new company with a total of two share holders and the partners have 50/50 rights in exerting control over the new company. In this scenario, should the company be treated as a subsidiary or an associate by the parent?
Then you would use the equity method. In order to consolidate you need at least 50% ownership of the voting stock. Meaning you need 51% ownership while the noncontrolling interest is 49%.
There would be no parent or subsidiary
Thank you Elliot