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Consolidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidation

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  • February 11, 2020 at 6:28 am #561324
    lusan
    Participant
    • Topics: 32
    • Replies: 17
    • ☆

    If parent give loan to subsidiary before acquisition, at the time of consolidation, what will be the accounting treatment in a group as a whole for the interest that is treated as finance cost and interest received in individual financial statement?

    February 12, 2020 at 9:05 pm #561561
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    Once the acquisition has happened then the loan becomes intra-group so all amounts are eliminated on consolidation. So, the asset/liability in the CSFP and income/expense in the CSPL.

    Thanks

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