Acquisition date
The acquisition date is the date on which the acquirer obtains control of the subsidiary. It determines the point for measuring the relevant acquisition-date net assets and separating pre- and post-acquisition results. The subsidiary’s results before control are excluded from consolidated post-acquisition profit; acquisition-date net assets are used in goodwill calculations.
Worked example
If control is obtained on 1 October, a calendar-year group includes the subsidiary’s post-acquisition results from that date.
Common mistake
Using the beginning of the accounting year automatically when control was acquired part way through it.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: date of acquisition