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unwounding of discounts in consolidated financial statements

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › unwounding of discounts in consolidated financial statements

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  • November 3, 2021 at 9:52 am #639825
    kayopha
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    how does a subsidiary record deferred consideration to be received from a parent in its individual financial statements?
    Also, do they also take into account the effects of unwounding in their individual statements?

    November 7, 2021 at 9:02 am #640123
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7180
    • ☆☆☆☆☆

    Hi,

    You only need to look at the deferred consideration from the perspective of the parent. Nothing arises in the subsidiary accounts as the payment isn’t being made to the subsidiary, it is being made to the subsidiary shareholders. They are not part of the group.

    Thanks

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