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“The process of consolidation results in a single separate legal entity”.
This statement is incorrect. Tutor can you please explain?
As I make very clear in the my free lectures, the only legal entities are the two separate companies.
Consolidated accounts are prepared to give better information to shareholders, but there is no actual consolidated company.
Thank you tutor.
And tutor, items shown in SOFP are capital items. I did an mcq in BPP kit (35.10) which says this. Not considering here consolidation its generally.
Is it correct?
If I say that all capital items are shown in SOFP and all revenue items are shown in SOPL so Is it right? Please correct me if I am wrong.
It is certainly true that capital expenditure appears in the SOFP and revenue expenditure appears in the SOPL.