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Consolidation of group accounts – mid year

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidation of group accounts – mid year

Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 31, 2020 at 12:20 pm #582832
    flickgreen
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi,
    Please can somebody tell me if we still add 100% of P and 100% S assets and liabilities together for the full year even if its a mid year acquisition on a consolidated SOFP? Is the only adjustment to be made on the calculation of reserves? thanks

    August 31, 2020 at 8:45 pm #582915
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    Yes, that is correct. We have control at the end of the year, regardless on when the acquisition took place and so the assets and liabilities are consolidated in full.

    You just need to pro-rate any profits for mid-year acquisitions.

    Thanks

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