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Different reporting dates
You gave an example in the video that if
One subsidiary has 30.6.10 as a reporting date and parent has 31.12.10 as a reporting date and another subsidiary has 30.6.11 as a reporting date then
We will account as from 01.1.10 till 30.6.10 and from 1.7.10 till DecemberQ1) wouldnt it be a time consuming task
Q2) what about 01.7.09 till 31.12.09
How and When we will account for these 6 monthsI can’t believe that I said this in lectures!
If the parent acquires a subsidiary part way through the parent’s own financial year, the parent will consolidate the subsidiary’s figures for the period subsequent to acquisition
The period before acquisition will be treated as pre-acquisition results and will not be included within the group results
The subsidiary itself will prepare financial statements for itself to cover the full year but the parent will incorporate only the post acquisition results in the group accounts
Does that answer you?
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