In general, increasing ownership levels for equity method investments are handled by retroactive adjustments of retained earnings (APBO 18) for shares previously held. In general, obtaining a controlling interest by increasing an investment now triggers a gain (or loss) for retroactive adjustment of the prior share holdings (FAS 141R). Does this give rise to a financial planning opportunity (to manage gain or loss recognition) by the manner in which a step acquisition is executed? In other words, can the amount of gain or loss be effected by the pattern an timing of share acquisitions leading up to the date of obtaining control?
