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Subsidiary issuing share capital after acquisition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Subsidiary issuing share capital after acquisition

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 4, 2016 at 12:49 pm #347366
    nisar01
    Participant
    • Topics: 3
    • Replies: 1
    • ☆

    If a subsidiary issues share capital after acquisition, how this would be treated in consolidated accounts.

    November 7, 2016 at 9:04 pm #347920
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7187
    • ☆☆☆☆☆

    Hi,

    This will never be examined but if you’re interested then it is similar to the retained earning treatment in that we consider our share of the subsidiary post-acquisition.

    Thanks

    November 8, 2016 at 9:50 am #348022
    nisar01
    Participant
    • Topics: 3
    • Replies: 1
    • ☆

    Our post acquisition share is then added to retained earning or share capital?

    November 10, 2016 at 7:10 pm #348373
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7187
    • ☆☆☆☆☆

    It’s the movement in share capital, so I’d have thought adding it to share capital would be more logical.

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