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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Subsidiary issuing share capital after acquisition
If a subsidiary issues share capital after acquisition, how this would be treated in consolidated accounts.
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
Our post acquisition share is then added to retained earning or share capital?
It’s the movement in share capital, so I’d have thought adding it to share capital would be more logical.