Index to Consolidation Examples

Poo creates Soo

Poo Creates Soo Example

Created 100%-owned subsidiary

At acquisition plus work papers for two years, cost and equity methods

Pebble & Stone

Pebble & Stone Example - Created Sub with Minority Interest

Created subsidiary with noncontrolling interest

A.  Pebble sells 20%

Work papers for cost and equity methods, 3 years each

B.  Stone issues more stock

Work papers for cost and equity methods, 3 years each

Business Combinations:  PA and Sun Examples

Accounting for Business Combinations

Illustrations of acquisition of assets, acquisition of stock, statutory merger, statutory consolidation, etc.

Also, short examples of parent company accounting under Parent Co and Economic Unit approaches

Plate & Saucer

Plate & Saucer - Acquired Sub - 100% owned

100%-owned acquired subsidiary

At acquisition plus three years cost and equity method work papers.

Play & Swing

Play and Swing - Acquired Sub with NCI

Play and Swing - Acquired Sub with NCI - Full EU

Play and Swing - Using Pushdown Acctg

Less than 100% owned acquired subsidiary

At acquisition plus three years cost and equity method work papers. Uses GAAP Economic Unit approach.

Pound & Sound

Downstream sales example (Pound & Sound)

Downstream sales to wholly-owned created subsidiary

Pup & Sup

Upstream Sales from Partially Owned Sub (Pup & Sup)

Upstream sales from partially-owned created subsidiary