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Legal fees in consolidation

This topic has 3 replies, 2 voices, and was last updated 1 year ago by P2-D2.

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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: 7136
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: 7136
No, they’re expensed through profit or loss as the debit entry. The credit is to bank as the payment.
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