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Hello sir
I had doubt regarding the net assetd of subsidiary, why is that when we deduct the intangible at acquisition it is negative & is added in the post-acquisiton profits ?
Regards
Hi,
The intangible is an asset and so if it is removed as we cannot recognise it then the asset figure will decrease. ~The movement in post-acquisition profits then comes about from totalling the net assets at both the acquisition and reporting date and looking at the movement, try not to look at the movement on each line item in the net assets working.
Where is it that you have seen this happening? If you let me know then I can explain it a bit further if needed.
Thanks
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