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Acquisition of subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Acquisition of subsidiary

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarMikeLittle.
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  • November 10, 2013 at 4:24 pm #145319
    AvatarNizar
    Member
    • Topics: 49
    • Replies: 125
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    how do we accounts for “$350000 for professional costs incurred to acquire a subsidiary which has not been recorded by parent company”

    how do we solve particular additional information, so use it as consideration transferred in computation of goodwill, and is there anything else we need to do with this figure? thank you.

    November 10, 2013 at 4:54 pm #145321
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Professional costs are no longer to be included within the costs of acquisition (share issue costs and registration costs are to be included but paying consultancy fees to a firm of accountants is to be expensed in the year of acquisition)

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