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Sir, what if the acquisition happens in the middle of the year ? What are the effects of it on the Consolidated Statement of Profit and Loss and Consolidated Statement of Financial Position?
It is exactly the same as the normal rules.
When calculating the pre and post acquisition profits we simply apportion the current years profit between the months before and the months after the date of acquisition (so if the acquisition was exactly half way through the year then 1/2 of the years profit is pre-acquisition and 1/2 is post-acquisition).And sir what about the revenue of the subsidiary? Do we take 6/12 of it if the acquisition is halfway through the year?
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