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hi mike
but in bpp it is written that
the subsidiary may also have share premium and revaluation surplus at the acquisition date which will be brought in the goodwill calculation along with other pre acquisition reserves
any post acquisition movement balances will be split between the froupp and nci but you said share premium is only of the parent but bpp says it has to be slplit?
“but bpp says it has to be slplit?”
BPP don’t say that at all! BPP says that if there is any post acquisition movement in the subsidiary’s reserves, then that movement is allocated between the parent and the nci
And I’m telling you that there will CERTAINLY NOT be any post-acquisition issue of shares by the subsidiary (at F7 level) and therefore also there will CERTAINLY NOT be any movement in the subsidiary’s share premium account
The subsidiary’s share capital, share premium and other reserves as at date of acquisition, by definition, equate to the carrying value of the subsidiary’s net assets as at date of acquisition
Those first 2 will not change post acquisition!
OK?
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