group accounts

Hi

I'm sure I have answered this once before - probably I didn't hit "send"

In answer ( again ) to your question - I have no idea! It seems to me that there is probably some integral piece of information inadvertently omitted from the question!

Sorry

But, remember, don't shoot the messenger!

Sir,
Please explain to me the applicability of the 10months pre and 2 months post acquisition in comprehensive example chapter 9.What should 'click' in my head when i come across such a scenario.I have a weakness in this paper and need your advice.

Yours
abiken

Hi

Time apportionment of "this year's" subsidiary profits in order to find the correct value of net assets at date of acquisition. In addition, because we are only consolidating 2 months of the subsidiary's results, we shall only give the nci their share of 2 months' profits / losses.

In the exam, it is almost certainly going to be the case that Steve Scott gives you a question with an acquisition part way through the year - so get used to it!

Hi. can you tell me whether loan notes are included in cost of investment for the calculation of goodwill?

If the loan note is given to the shareholders of the subsidiary whose shares we are now acquiring, then, yes, it should be included. It's part of the fair value of the consideration being paid to acquire control.

If the loan note is merely a loan to or from the subsidiary, it will be an asset in one balance sheet and a liability in the other. That loan note is cancelled on consolidation