This study analyzes the effects of corporate takeover and consolidation accounting. It discusses direct purchase vs share acquisition, equity accounting, and consolidation accounting. It also covers the impact of intragroup transactions and balances, and the changes needed for preparing consolidated financial statements. The study concludes that direct purchase is a better option and profit from inventory sale should be deducted from the subsidiary's reported profit. AASB provisions are also discussed. Get more study material at Desklib.