Subsequent Consolidation
After the Acquisition Date
In later years, consolidation includes current-year income, depreciation on fair value adjustments, amortization of identifiable intangible assets when applicable, and updated noncontrolling interest balances.
- Carry forward goodwill.
- Recognize current subsidiary income.
- Update retained earnings.
- Adjust fair value differences.
Note
The parent's investment account changes depending on the accounting method used in separate financial statements.
Summary
Subsequent consolidations build upon acquisition-date adjustments while reflecting current-year activity.