Intercorporate Investments

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Intercorporate Investments

	Investment in financial assets	Investment in associates	Joint Venture	Business Combination
influence/control	(None)	significant influence	joint control	control
method	Held-to-maturity[HTM] Available for sale[AFS] Held for trading[HFT]	Equity method	IFRS: Proportionate consolidation [pc] U.S.GAAP: Equity method [eq]	Acquisition
Goodwill				IFRS: full [FG],partial [PG] U.S.GAAP: full [FG]
Income Statement
Revenue (Sales)		(No change)	[pc] +share(%) [eq] (No effect);  reflected in a single line)	+100(%)
Cost of sales			[pc] +share(%) [eq] (No effect);  reflected in a single line)
Expenses			[pc] +share(%)  [eq] (No effect);  reflected in a single line)
Depreciation and amortization expenses			[pc] +share(%) [eq] (No effect);  reflected in a single line)	+100(%) +(e.g.)amortization of licese(*) (*) (Purchase price (for 100%) - Net Asset BV(for 100%))/Economic life
Earnings before taxes	[HTM] dividends [AFS] dividends [HFT] unrealized P&L + dividends
Net income	[HTM] dividends share(%) [AFS] dividends share(%)	+share(%)	[pc] +share(%) [eq] +share(%)	+100(%)
Balance Sheet
Current Assets		(No change)		+100(%)
Total Assets			[pc] +share(%) [eq]	+100(%) Assets -Cash paid for the purchase +Goodwill [FG] higher  [PG] lower
Debt		(No change)		+100% (usually BV=FV)
Current Liabilities		(No change)		+100(%)
Shareholders' equity		(No change)	[pc] +share(%) [eq] +share(%)	+Noncontrolling interest
Total Equity		(No change)		+Noncontrolling interest [FG] higher  [PG] lower