Internal transaction cost valuation

Initial long-term investment cost = fair value of actual consideration paid

Difference recognition: goodwill

Subsequent measurement: cost method

Consolidated Statements: Equity Method

Equity of investee’s net assets*%

Actual consideration paid is fair

Which is the highest measurement Related transaction fees

If stocks and bonds are issued, it is equivalent to borrowing money first. All issuance costs cannot be included in the cost of long-term investment. Initial long-term investment cost = financing amount - financing cost

Purchased%＞Payment

Purchased%＜Payment

investment cost

Profit and loss adjustment

other comprehensive income

Other changes in equity