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could you explain how to treat the pre-acquisition profits or losses in the net assets of the subsidiary calculating the goodwill. Should it be added or substracted to/from the net assets transferred?
If we are to add the ore-acquisition profits as represented by the retained earnings amount at date of acquisition, what do you think we’re going to do with the preAcquisition losses? We’re going to subtract them from the FV of SNA @ DOA in arriving at a goodwill figure
Is that ok?
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