ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Author: Christensen
Publisher: MCG CUSTOM
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Chapter 5, Problem 5.15AQ
To determine

Differential:

In investment accounting, the term differential is used to represent the difference between the sum of fair value paid, fair value of shares already owned by the investing company, fair value of non controlling interest and the book value of the net identifiable assets acquired.

To Indicate the importance of a consolidated financial statement in case of a large differential.

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