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?
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unwounding of discounts in consolidated financial statements
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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