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Hi all,
I have a question about the consideration when acquiring a subsidiary.
For example, the company A owe the company B CU100 before the acquisition date due the the purchase of goods and services.
For acquisition, company A make the payment CU1000 to acquire 80% shares of company B
So the consideration in this case is CU1000 or CU900
Please show me the guidance about the consideration.
Thank allI am not a hundred percent sure but I believe this would not impact on consideration or goodwill calculation unless it was specifically linked with the transaction connected with gaining control of the subsidiary.Otherwise consolidation adjustment would just be carried out normally.
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