hmm 1.why share capital is always same in 'acquisition date and current date' of subsidiary company?
2. when we are preparing CSOFP we add liabilities of both parent and subsidiary company. are all liabilities of subsidiary paid by parent company ?
Ask the Tutor ACCA FA
consolidation
11y ago#11. In real life (and in Paper F7) then it might not be. In Paper F3 we always assume that there have been no new shares issued since acquisition.
2 No - of course not. They are two completely separate companies and they will pay their own liabilities.
When we prepare consolidated accounts then we show the total liabilities of both companies as if it was one big company. (But it is only because we are required to - there is no one big company in law!)
thank yuh john :)
john, what about revaluation reserve. is the value at acqn and after acqn remain same or do wee need to do workin?
11y ago#4In F3, the value will not have changed.
Sign into reply to this topic.