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From the group point of view essentially what has happened is that the GROUP OR PARENT has purchased a bundle of assets and liabilities ?
A little confused. which one is correct?
“In the ownership interest section of the balance sheet we need to show the share capital of the PARENT COMPANY ONLY since the group is owned by the shareholders of the parent company. The shares in the subsidiary are now held by the parent and since this is purely internal within the group it doesn’t represent any claim from the outside world.”
I add another question.
I don’t quite understand the above words.
Can someone explain it simpler?
Thank you.It is essentially the parent, as they head up the group. You need to define the type of aquisition ie how much the parent/group owns to calculate the consolidated view. Also the group structure will determine this, i cant remember if that is really covered in F7
From what i remember, you will have a P and S group, or a P and S with A, its always prepared from the parents view from how much they control
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