Part Acquired Subsidiary — OpenTuition Forums

AAnonymous13y ago

Hi Mike,

I'm confused if a sub is acquired part way through. How this will be treated in financial accounts

Soci will show results on a time apportion basis eg revenue x6/12
Sofp. Will the assets and liabilities will not be time apportioned as per Soci

I'm doing a mock set by London School of business and finance.

Please help me. Thank you

MikeLittleTutor13y ago#1

For CSoCI, include the results of the subsidiary for the period whilst it was under our control - that is for the post acquisition period.

The CSofFP is as at a moment in time! If it's a subsidiary at the year end, then the subsidiary's financial position is consolidated - even if it has only been a subsidiary for 10 minutes

Same applies in the year of disposal - consolidate the results up to the date of acquisition and there's NOTHING on the balance sheet

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