Dear sir,
Will you tell me the effect of this transaction in the consolidated statement of financial position ?
Regards
Shoaib
Ask the Tutor ACCA FR
Acquisition of preference share or loan notes
10y ago#1It's a very rare occurrence that the parent will buy either preference shares or loan notes on acquisition
If it happens, then the amount paid for the preference shares or loan notes is added to the amount paid for the equity shares together with the value of the nci and from that increased figure you will take the fair value of the net assets (as represented by shareholders' funds) as well as the fair value of the loan notes or preference shares
But it's not going to happen!
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