Equity method from the perspective of investee


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Hi there !
I would appreciate information regarding the effect on the P&L and balance sheet of the investee when it comes to equity method accounting.
For example, consider a company A acquiring 30% of company B (all paid in cash). There are plenty of sources describing what happens to the statements of company A, but virtually nothing is said about company B. Specifically, where is goodwill reported ? It seems to me that in equity method goodwill is reported in investee's balance sheet, rather than the investor's balance sheet.

I really need experts' help on this! Looking forward to getting your answer.
 
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kirby

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"nothing is said about company B." That is correct because nothing happens to company B. Let's say that Company B was 100% owned by Company X before A acquired 30% of B. When A acquires 30% of B , Co A pays Co X (not Company B).
 

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