Hallo,
If a shareholder buys an off the shelf company for 1000 euro, then backs into this company some assets due to an agreement with a previous company, how does one account for the opening balances?
I assume it must take the existing companies balance sheet items as its own , but the shelf company only had 1dollar as capital, so I assume it will be 1000 euro Share Capital and 1000 euro Payable
Ask the Tutor ACCA FR
New company purchase of shelf company
5y ago#1Hi,
I don't think you'll find this in the FR exam and it looks like you're asking for technical advice in relation to a work related item.. I therefore cannot answer this question, sorry.
Thanks
Sign into reply to this topic.