If you acquire 60% of the outstanding stock of the Company, what do you record on date of acquisition? We will acquire the remaining 40% within 3 months.
Step acquisition
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Since the Company acquired 60% of the outstanding shares, it has a controlling financial interest. Therefore, the Company will consolidate the entity under ASC 810-10 and recognize the assets acquired, liabilities assumed and noncontrolling interest in accordance ASC 805. Subsequent increases or decreases in its ownership interest are accounted for as equity transactions in accordance with ASC 810-10.