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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidation
Hi, some help please. A company acquired 100% shares of another company, and the acquired company purchased some shares in the parent company. Upon consolidation of the financial accounts, do we eliminate the cost value of the shares the wholly owned sub purchased in the parent or do we eliminate the fair value?
The acquired company CANNOT own shares in the parent company – it’s contrary to ( English ) company law. Question answered?
