I’m confused if a sub is acquired part way through. How this will be treated in financial accounts
Soci will show results on a time apportion basis eg revenue x6/12
Sofp. Will the assets and liabilities will not be time apportioned as per Soci
I’m doing a mock set by London School of business and finance.
Please help me. Thank you
For CSoCI, include the results of the subsidiary for the period whilst it was under our control – that is for the post acquisition period.
The CSofFP is as at a moment in time! If it’s a subsidiary at the year end, then the subsidiary’s financial position is consolidated – even if it has only been a subsidiary for 10 minutes
Same applies in the year of disposal – consolidate the results up to the date of acquisition and there’s NOTHING on the balance sheet
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