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FRshare exchange or share acquire

QQIN14y ago
Pilot Paper Q1-Pumice, my calculation for Share Capital of P Group in CSFP is
plus 80% of Silverton: 80%X3000=2400,which also arises share premium 13,6m-2.4m=11.2m. Why wrong?

why in some years paper, the question said P has share exchange with S. We can plus acquired equivalent shares of P?
NNajiya14y ago#1
When we acquire shares of another entity, it is an investment for us and thus shown as a non-current asset in the SFP.
In Q- Pumice, this is the case. But, investment in S will not be shown in CSFP. It is replaced by the net assets of S.

When there is a share exchange, shares issued by the parent as purchase consideration should be added to the parent's share capital while preparing CSFP, unless the question states that the issue has been recorded.
QQIN14y ago#2
Thanks, clear now.
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