date of purchase, not included in the consolidated financial statements.difference between the price paid for the acquired net assets of a going concern , and the fair market value is the price the firm or reserve capital (negative goodwill arising on the purchase price, less the fair market value). [18], the price of the company reflects the potential profitability of the subsidiary, not shown in the account, and the value of unidentified assets and qualitative indicators. Price firm recognized in the consolidated balance sheet under "Intangible Assets", which is subject to depreciation over the period of its expected future profitability.the acquiring company already has a reputation, relationships, well-established and profitable production, the best-selling products, and well-organized distribution system, the cost of acquisition will be different not only from the book value of net assets, but also on the fair market value of the identifiable assets.fair market value in different situations may be different. In some cases - is the value of assets and liabilities for transactions of informed and interested parties not participating in a particular transaction for the acquisition. In the other - the lowest replacement cost is applied when the assets actually be filled. This may be a net cost of implementation, if the assets are to be sold.should be noted that the fair market value is determined differentially by type of property. This may be used in reference prices for machinery and equipment, the prices of relevant markets, the present value of long-term receivables and payables, current cost of reproduction of land and work in progress, the adjusted acquisition cost of inventory and long-term contracts., the price of the company - is the difference between the amount paid to a going concern, and the fair market value of the acquired identifiable assets.need for consolidation of capital associated with the elimination of double counting in the consolidated accounts and the correct reflection of the equity in the balance of a single economic unit.consolidated accounts are prepared in terms of the parent (holding, Office). the purpose of consolidated financial statements in accounting Western guided quantitative approach to measuring the impact of these operations on the investor that is largely arbitrary, since the dependence of the project company will not necessarily result in a high proportion of the investor in its share capital, and the control can be carried out in another way. are three levels of influence of the investor:
Less than 20% in the share capital of the investee company (no significant effect);
20 to 50% (significant influence);
More than 50% in the share capital of the investee company (control of consolidated financial statements). [21] of more than 20% of shares with voting rights, can exercise significant influence over the investee. ...
