What is the difference between the price paid and the book value of the equity of the subsidiary?
A) Difference arising on first consolidation.
B) Valuation difference.
C) Residual difference.
D) Price to book difference.

Question

Quizplus · Accepted Answer

The difference between the price paid and the book value of the equity of the subsidiary is referred to as the difference arising on first consolidation. This reflects the premium paid over the book value during the acquisition of a subsidiary.

What Is the Difference Between the Price Paid and the Book