Investment in Associates (US GAAP vs IFRS)

CFA Level II FRA
#1

Hi, I am getting a bit confused here.

When a company takes over another (controlling stake), would I use the Market Value or Book Value of the acquired company to consolidate?

US GAAP:

IFRS:

And for both Equity Method and Acquisition Method, would I use the Goodwill based on the market value net assets or book value net assets?

Again US GAAP:
IFRS:

Thanks a lot!

#2

Assming you pay cash the reduction in cash it as markt values.

Assets are consolidated at fair value (ie. tangibles at an assessment of fair value, but land could be at market)

Any difference is Goodwill (2 different methods with full consldiation approach)

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