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Consolidation

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

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • February 6, 2023 at 4:57 am #678392
    sainikmishra4
    Participant
    • Topics: 13
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    What is the adjustment you have to do if ,for example parent also buys 8% loan note of sub, do we have to calculate interest and remove it or what ?

    February 8, 2023 at 8:13 pm #678567
    P2-D2
    Keymaster
    • Topics: 4
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    Hi,

    Yes, as the purchase of the loan notes issued by the subsidiary is an intra-group balance then it would need to be eliminated on consolidation along with the associated interest.

    Thanks

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