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.
IAS 1 rules IAS 1 requires companies to observe the following rules in preparing published financial statements: 1) The financial statements should reflect a true and fair v
Q. What do you mean by Fiscal Year? Fiscal Year - Period of 12 consecutive months chosen by an entity as its ACCOUNTING period that may or may not be a calendar year. Fixed Ass
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 The beta coefficient
Q. What do you mean by Franchise? Franchise - Legal arrangement whereby owner of a franchisor, trade name, contracts with a party who wants to use the name on a non-exclusive b
basics
Steps in preparing the consolidated balance sheet Step 1 : Prepare the 3 important accounts i.e. cost of control to determine goodwill Group retained profits Mino
The common stock of the CC Corporation has been trading in a narrow price range of around $50 for months, and you are convinced it is going to stay in that range for the next 3 mon
Jaedan Industries has the following account balances as of December 31, 2010. The firm's dividend payout ratio is 25% and the tax rate is 34%. The firm's stock price on December
gdjgjgjgf
A Valid Will A will may be made: Orally; it will not be valid unless: 1. It is made before two or more competent witnesses (i.e. persons of sound mind and full age); and 2.
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