Part Acquired Subsidiary

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    Hi Mike,

    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

    Avatar of MikeLittle
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    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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