Consolidation

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October 7, 2016 at 9:37 am #342612
roselyimo
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Hi, am solving this acca past paper: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/exampapers/int/F7INT_2013_jun_q.pdf
The answer (https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/exampapers/int/f7int_2013_jun_a.pdf) for question 1a iv) shows that the post acquisition profit for Strata was calculated by adding pre acquisition losses. pls explain why it was not deducted since it is a loss?
October 7, 2016 at 10:04 am #342613
MikeLittle
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If the profit for the year is made up of a pre-acquisition loss and a post-acquisition profit (let’s say the pre-acquisition loss was $4,000 and the results FOR THE YEAR were $10,000 profit) please tell me how much profit was made in the post-acquisition period
OK?
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