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 to owner, due to him purchasing directly with own cash..
Then any assets f
Ask the Tutor ACCA FR
New company purchase of shelf company
Then any assets from the agreement/settlement with third company, effectively some cash and receivables for nil cost, will then have to be put on balance sheet as assets and credited to revenues, seeing that it was at nil cost..
Does this all sound right?
If the date of the agreement with the third party is 30jun, but the new company bought
But the new company bought the off the shelf company on 20july, is it still possible to have a start date of 1july for this new companies financial statements?
Again, I cannot answer these questions as they aren't FR related.
Thanks
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