Education For All

Text size
  • Increase font size
  • Default font size
  • Decrease font size

Financial Accounting - Lecture 17

Lecture 17 - Acquisitions


1. Understand that the accounting method used for acquisitions depends on the extent to which the investor exerts influence over the investee.

2. Understand the effects of dividends received and investee income on the financial statements of the investor under the equity method.

3. Understand the effects of consolidated accounting on the balance sheet and income statement of the investor:
a. Does an acquisition effect shareholders' equity?
b. What do minority interests on the income statement and balance sheet represent?
c. How is goodwill computed?

Prof. Richard Frankel, Prof. George Plesko, Prof. Kin Lo
15.515 Financial Accounting, Fall 2003
(Massachusetts Institute of Technology: MIT OpenCourseWare)
Date accessed: 2009-04-30
License: Creative Commons BY-NC-SA

Lecture Material

To view the lecture material accompanying this lecture in a new window, please click the button below. If necessary, use the vertical or horizontal scrollbar in the new window to view more of the material or you can resize the window.

To download the above lecture material use this link. (Right-click and select Save Target As or Save Link As.)



Chinese (Simplified) French German Italian Japanese Korean Portuguese Russian Spanish
More educational resources: