BAR — Quick Sheet
Business Combinations (Advanced)
Read time: ~5 minutes
One-minute revision
- Consolidate on control (majority voting or VIE primary beneficiary)
- Eliminate intercompany balances and transactions 100%, regardless of ownership %
- Upstream unrealized profit allocated between controlling and NCI; downstream entirely to controlling
- Step acquisition: remeasure previously held interest to FV → gain/loss to earnings
- Ownership changes while retaining control = equity transaction (APIC), no gain/loss
- Losing control = recognize gain/loss and remeasure retained interest to FV
- Measurement period: up to 1 year, adjust goodwill retrospectively