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sir,
Could you guide me on what all is included in the cost of consideration a company pays while acquiring another.
does legal fees or professional fees included in cost or are the written off as they are incurred?
and what about the issue costs of shares and debts to fund the acquisition?
Regards
Jatin
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Is the purchase consideration of an associate company included in the calculation of the final figure to take to the SFP on consolidation?
two ways of calculating working 5A
Either “Our share of A’s net assets at BS Date + any goodwill remaining after impairment”
or
“Cost of investment + our share of A’s post acq profits – goodwill impaired”
I prefer the first method – at this level.
IF you are going to use the second method then, yes, acquisition cost is part of the calculation for working 5A
If you use method 1, then, no.
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