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Consolidating a subsidiary under liquidation.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Consolidating a subsidiary under liquidation.

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.
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  • Author
    Posts
  • April 29, 2016 at 8:40 pm #313106
    cosato
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    In the group financial statement, how do you account for a subsidiary that is in liquidation, presuming the liquidation process commenced before that accounting year and may extend beyond and also the liquidation is at the instance of shareholders. Can it still be consolidated?

    Thank you

    May 2, 2016 at 9:17 pm #313402
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    I don’t believe that there are any specific rules that say the subsidiary cannot be consolidated. Even if it is being liquidated we still have control.

    Thanks

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