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Legal fees in consolidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Legal fees in consolidation

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by P2-D2.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 5, 2023 at 12:58 pm #692856
    tit1112
    Participant
    • Topics: 17
    • Replies: 34
    • ☆☆

    Are legal fees associated with the acquisition accounted for in consolidation by deducting it to w5 under group retained earnings please?

    October 8, 2023 at 8:09 pm #692931
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7207
    • ☆☆☆☆☆

    Yes, they are expensed through profit or loss and so will be deducted from the parent’s retained earnings, which appear in the group retained earnings working.

    October 9, 2023 at 6:47 am #692940
    tit1112
    Participant
    • Topics: 17
    • Replies: 34
    • ☆☆

    thank you and for the legal fees should we add it as well to the cost of investment please?

    October 11, 2023 at 5:10 pm #693046
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7207
    • ☆☆☆☆☆

    No, they’re expensed through profit or loss as the debit entry. The credit is to bank as the payment.

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