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An assistant manager at a restaurant gets a $100 a month raise.He figures that with his new monthly salary he cannot buy as many goods and services as he could buy last year.
Goodwill
An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of its net assets.
Proportionate Consolidation Method
An accounting technique used for combining the financial statements of joint ventures, where the investor's share of each line item is included proportionally.
Non-Controlling Interest (NCI)
A financial interest in a subsidiary attributed to shareholders outside of the controlling shareholder group, reflecting their share of the entity's equity that isn’t controlled by the parent company.
Identifiable Net Assets (INA) Method
is a technique used in business combinations to value the acquired company by summing the fair values of its identifiable assets and liabilities.
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