Probably a very stupid question but I would like some clarity.
Let's say Company A acquires Company B in 1st January 2014. So company B's 2014 net income will show up in Company A's 2014 net income statement. But when comparing Company A's 2014 income statement with 2013, does the 2013 income statement also include company B 2013 revenues and income. What about Company A's 2012 or 2011 etc. income statement? Is the acquirer required (under GAAP or IFRS) to adjust previous period statements so to show company B as part of company A in periods prior to acquisition?
Similar case when Company A acquires company B in the beginning of 3rd quarter. When I look at Company A's net income in 1st quarter, does that include company B earnings or not?
