Journal for Equity Method
P owns 30% of S1. (using equity method)
Investment = 30.000 USD
Equity of S1 = 25.000 USD
S1 owns 70% of S2. (using purchase method)
Investment cost = 50.000 USD
Equity of S2 = 30.000
What is the journal of first consolidation in group S1 and group P?
Dan Sullivan replied
Actually goodwill should be 29 (50 -(30 *70%))
Have you checked the accounting technique assignment for the cons group view for cons group P to make sure it is equity and not purchase? In accounting technique, click on P and then change the view to cons group. Here the method should be equity.