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Subsidiary acquired at 1 oct 2012
Year end 31 3 2013
SoFP
Ret earn.
Parent subsidiar
At 1.4.2012 19200 (4000)
For 31 3 2013 7400 8000Adjustment
At date of acq subs produced a draft SOPL which showed it had nade a net loss after tax of $ 2m
At that date .parent accepted this figure as the basis for calculating pre and post acq split of stratas profit for the year ended 31.3.2013Sir in w2 calculation ie gw
Sna at DoA.Pre acq loss is given as 6000 ie. (6000)
Can u please explain how did they come up with (6000) answer.
I wonder why have they not time apportioned 8000 of subsidiary from april to sep ie 6 months and include it under pre acquisiton profitWe know from the extract that you have given me that there is a brought forward aggregate deficit of $(4,000)
Parent subsidiar
At 1.4.2012 19200 (4000)And we know from the note that:
“At date of acq subs produced a draft SOPL which showed it had nade a net loss after tax of $ 2m”
So we have a brought forward deficit of $(4,000) and a pre-acquisition period loss of a further $(2,000) and that’s where the $(6,000) comes from
Incidentally, the $8,000 profit for the year ended 31 March, 2013 must therefore also mean that the post-acquisition profits were $10,000 …
… that’s $(2,000) deficit pre-acquisition and $10,000 profit post acquisition giving $8,000 profit for the year
So, in fact, $8,000 has been time-apportioned int (2) and 10
OK?
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