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Fairvalue allocation
Fairvalue - Bookvalue = Excess fairvalue over bookvalue - allocation to specific accounts = Goodwill -
Entry S
eliminate the subsidiary's stockholders' equity accounts as of the beginning of the current year along with the equivalent book vale component within the parent's investment account. -
Entry A
recognizes the unamortized allocations as of the beginning of the current year associated with the original adjustments to fair value -
Entry I
eliminates the impact of intra-entity subsidiary income accrued by the parent -
Entry D
eliminates the impact of intra-entity subsidiary dividends -
Entry E
recognizes excess amortization expenses for the current period on the allocations from the original adjustments to fair value