Hi,
I wanted to know what is the procedure to be followed while a parent company is acquiring shares in its subsidiary in multiple tranches. For eg. on 1st january, 40 percent and then on 1st july 30 percent. At the end of the year when we consolidate the accounts, what effect is to be given to pre-acquisition profits.
Thanks in advance
Ask the Tutor ACCA FA
consolidation of financial accounts
You would have to make separate calculations.
However this is not examinable in Paper F3 - not until F7.
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