[quote=“Fry,post:97,topic:39547"”]
OK I get it. The actual acquisition transaction doesn’t affect the income statement. Credit cash, debit assets. Doesn’t affect the income statement.
Cool. I was hoping they didn’t smoke our profit sharing by doing that.
EDIT: Nope, not quite. I cracked open my accounting book and now I think I’ve got it. It will show up, but like you said there will be an equal gain and loss of assets so there will be no net effect.
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UNLESS, it changes the formula for the bonus.
If they bought a failing company and based bonuses on the whole enchilatta(sp) you might get screwed.
I seriously doubt they would do that but you know how evil corporations are.