Pre-acquisition losses in subsidiary company, Financial Accounting

Pre-acquisition losses in subsidiary company on date of acquisition

If the subsidiary company has a loss on the date of acquisition i.e. a debit balance in the retained profits (profit and loss) account, then in computing good will, the entry to cost of control of profit and loss on acquisition will be reversed as follows.

     DR. Cost of control
            CR. Group retained profits
(With the holding company’s share of the loss)

Posted Date: 12/12/2012 3:13:02 AM | Location : United States







Related Discussions:- Pre-acquisition losses in subsidiary company, Assignment Help, Ask Question on Pre-acquisition losses in subsidiary company, Get Answer, Expert's Help, Pre-acquisition losses in subsidiary company Discussions

Write discussion on Pre-acquisition losses in subsidiary company
Your posts are moderated
Related Questions
Budgetary Control is a technique of managerial control through budgets. Elaborate.

Q. What do you mean by Operating Agreement? Operating Agreement - Agreement, generally a written document which sets out the rules by which a LIMITED LIABILITY COMPANY (LLC) is


Q. If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is a. Common Stock Dividends Distributable. b. Common St

Determine about the accounting information Numerous user groups have an interest in accounting information relating to a business. Majority of these are outside the business ho

Deferred taxation is caused by timing differences that arise when a transaction is recognized differently for accounting and tax purposes; for i.e, capital expenditure, that invol

In May 2011, Your Company purchased the rights to a natural resource for $4,125,000. The estimated recoverable units from the natural resource amount to 5,500,000 units. During the

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Question : The subsequent data pertain to a shop. The owner has made following sales forecasts for the first 5 months of the coming year.

Protected transactions These fall into three categories: (A) Under Section 50: Payments by the bankrupt to creditors; Payments or deliveries to the bankrupt; C