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Does anyone know the answer: if I realised after year end the parent company had increased the shareholding (step acquisition) on its associate, and the associate now become subsidiary of the group. Do we need to consolidated it’s account for current year? (it is a post balance sheet event). May I know what is the treatment before and after the audit report had signed.
But my purchase is done during next financial year. Does it relate to this financial year? Why need to do conso since I gain the control on next financial year.
can you please quote the dates? your question is weird without dates..
What I understand from your post, that acquisition took place during the year.. but it was realised after year end that wrong accounting took place…
But from your new post you are saying that acquisition took place after year end.. then there is no need to consolidate.. Because you are reporting on Year End.. not after year end!!!!
If you are confusing with IAS 10 then you must clear what are the conditions mentioned in IAS 10 🙂
Well your question contains answer of you question and you already answered your question in your ambiguous statement!
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I would say that if the intention of acquisition existed prior to year end it must be disclosed in the notes however no consolidation is required as it will be a non adjusting event. though it may seem to be material to the FS but yet it cannot be accounted for. P.S. its a rare that a company may not disclose such an acquisition as it will help improve its FS because once a company becomes your subsidary you also show their assets n liabs in ur FS which will improve the footer of your BS
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