In addition, Paradigm Co issued to the shareholders of Strata Co a $100 10% loan note for every 1000 shares it acquired in Strata Co. Paradigm Co has not recorded any of the purchase consideration, although it does have other 10% loan notes already in issue.
Why the interest on the loan note not included in current liabilities in the bpp kit. Also why the interest on the loan not deducted from the retained earnings of the parent in the kit
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financial statements
3y ago#1Presumably as it has already been recorded.
But the question says that paradigm co has not recorded any of the purchase consideration
Why the interest on the loan note purchase consideration not included in current liabilities in the bpp kit. Also why the interest on the loan note purchase consideration not deducted from the retained earnings of the parent in the kit whilst it is mentioned that paradigm co has not recorded any of the purchase consideration so the interest on the loan note purchase consideration is not recorded
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