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Sir the kaplan text states that assume all revenue and expense accrue evenly througout the year UNLESS STATED TO CONTRARY
Now i saw a question
(Extract)
Revenue:
Parent 31200
Subs 10400
The subsidiary sold goods to parent in the Post acquisition period of 4400
The parent acquired subsidiary on 1 july 20×8(year end 31 march 20×9)
Now my doubt is that they first apportioned 10400 and then deducted 44000 from it.
But shouldn’t we first remove 4400 and then apportion as it clearly states in POST ACQUISITION PERIOD and that means it does not accrue evenly throughout the period and that it is only for the 9 months post acquisition ??
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