When parent company acquires subsidiary company for $500,000 and the value of subsidiary is $300,000. How do you record this transaction in the individual accounts and financial statements of the subsidiary company? What happens to the $500,000 cash? Does the subsidiary company utilise it or the shareholders of subsidiary company takes it?
Given that here they are obviously not buying the shares on the incorporation of the subsidiary they are buying them from the previous shareholders and it is to them that the cash will go.
Author
Posts
Viewing 2 posts - 1 through 2 (of 2 total)
You must be logged in to reply to this topic.
Cookies
We serve cookies. If you think that's ok, just click "Accept all". You can also choose what kind of cookies you want by clicking "Settings". Read our cookie policy