Legal fees in consolidation

This topic has 3 replies, 2 voices, and was last updated 2 years ago by P2-D2.

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October 5, 2023 at 12:58 pm #692856
tit1112
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Are legal fees associated with the acquisition accounted for in consolidation by deducting it to w5 under group retained earnings please?
October 8, 2023 at 8:09 pm #692931
P2-D2
Keymaster
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Yes, they are expensed through profit or loss and so will be deducted from the parent’s retained earnings, which appear in the group retained earnings working.
October 9, 2023 at 6:47 am #692940
tit1112
Participant
- Topics: 17
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thank you and for the legal fees should we add it as well to the cost of investment please?
October 11, 2023 at 5:10 pm #693046
P2-D2
Keymaster
- Topics: 4
- Replies: 7232
No, they’re expensed through profit or loss as the debit entry. The credit is to bank as the payment.
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