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4 important effects on the balance sheet and income statement items that result from the choice of acquisition accounting method:

October 20, 2015
  1. Both the acquisition and equity accounting method report the same Net Income.
  2. Acquisition method equity is higher by the amount of minority interest compared to equity method.
  3. Assets & Liabilities are higher under the acquisition method.
  4. Sales are higher under the acquisition method.
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