Advanced Accounting (Canada) · Changes in Ownership (step purchase, disposal, loss of control, preferred, indirect)

Before control, a stake later stepped up to control may sit under two measurement bases. Which two, and why does it matter which one applied when you remeasure at the step-up?

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More in Changes in Ownership (step purchase, disposal, loss of control, preferred, indirect)

A parent that already controls a subsidiary buys more of its shares from NCI. Is this a new business combination, and does goodwill get touched?

On a step purchase that achieves control, the parent already held a 30% equity-method interest in the acquiree. What does it do with that prior interest, and where does the effect land?

A parent changes its ownership in a subsidiary. What single fact decides whether the change is an equity transaction or generates a gain/loss in net income?

A parent sells part of its subsidiary shares but keeps control. It receives proceeds above the book value of the interest given up. Where does the excess go?

When allocating a subsidiary's net income, in what order do preferred dividends and the parent/NCI split happen, and who gets the preferred claim?

Parent owns 80% of Sub; Sub owns 70% of SubSub. Does Parent control SubSub, and what is Parent's effective ownership in SubSub for the NCI calculation?

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