Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
ACQUISITION OF A SUBSIDIARY COMPANY DURING THE YEARWhen the holding company acquires a subsidiary company portray during the financial period, and then the approach to preparing the consolidated income statement will change slightly. This is because IAS 27 requires that the subsidiary company should be consolidated from the date of acquisition.This means that the results of the subsidiary company should be assumed to accrue evenly over the year and thus they can be split between pre-acquisition and post-acquisition period.Thereafter the post-acquisition results are consolidated the normal way, paying attention to the following items.1) The sales, cost of sales, expenses and tax of the subsidiary company that relate to the post-acquisition period will be added to those of the holding company while making adjustments for inter-company items that have arisen or that relate to the post-acquisition period. e.g.; Inter-company sales should relate to the post acquisition period, goodwill impaired should be pro-rated and same case applies for additional depreciation on fair value adjustments.2) The computation of the minority interest will remain as before only that this time we will take the post acquisition profits after tax of the subsidiary company.Note: In the adjustments, there will be no unrealised profit on opening inventory on opening inventory.3) The group retained profits b/f will only be for the holding company. This is simply because the retained profits b/f of subsidiary company is all pre-acquisition.
Note: In computing goodwill, do not forget pre-acquisition dividend.
Concept of Financial statements Financial statements portray the financial effect of transactions and events by grouping them into classes broadly called elements. A complete
Q. What is Backup Withholding? Backup Withholding -Payers of interest, dividends and other reportable payments shouldwithhold income tax equal at a rate equal to the fourth low
Q. Explain Forward loading with example? Terms may involve option to be issued with price to be determined based upon lowest price as of the issue date or for the subsequent 30
Q. Show the Audit Documentation? Audit Documentation -Written record of the basis for AUDITOR's conclusions which provides the support for auditor's representations, whether th
Assume that the company has an investment opportunity. Building a new factory would cost $750 million but would reduce cash operating costs by $150 million per year for the next 1
Concept of financial Accounting Accounting is the art of recording, classifying and summarizing the business transactions and events. Double Entry System is the base for reco
The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (all units measured in tons). Alpha's Production PossibilitiesFrontier
is there anyone can help me to do it?
what is recorded sales on account of 3,280
talpat se aap kya samjhte hai
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd