Group Accounts The Consolidated Statement of Financial Position (1b)

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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January 13, 2016 at 11:42 am #294312
maddison
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Hi john,
Thank you for your lecture. I was wondering why when the parent company buys the subsidiary why is it they value to company on share capital and pre-acquisition retained earnings and do not include non-current assets ?. Maybe I’m missing something. Your help would be much appreciated.
Maddison
January 13, 2016 at 6:15 pm #294421
John Moffat
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Share capital + reserves is always equal to the net assets..
So share capital + reserves at the date of acquisition is the same as the book value of the net assets acquired.
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