i have 2 remaining issues when consolidating.
loans and investments.
sometimes loan is removed, sometimes loan is reduced from investments but remains in non current liabilities.
is there a lecture on this?
i cant seem to get the hang of general principles
Ask the Tutor ACCA FR
consolidation
10y ago#1It all depends on when / why the loan is created.
If its part of the purchase consideration, it will have been issued to the former shareholders of the newly acquired subsidiary and will continue to be shown on the consolidated statement of financial position
If the loan is not part of the purchase consideration it will have been issued to the newly acquired subsidiary (and therefore not to the former shareholders). In this situation the subsidiary owes money to the parent and the parent is owed money by the subsidiary. That's the situation where we cancel
Ok?
wow.. thank u!
10y ago#3You're welcome
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