Page 241 - FR Integrated Workbook 2018-19

Consolidated statement of financial position

Mid-year acquisitions

4.1 Impact on standard workings

When a parent acquires a subsidiary part-way through the current year, it is
necessary to calculate the net assets of the subsidiary at the acquisition date. In
order to do this, the retained earnings of the subsidiary at acquisition to be used in
the net assets working (W2) are usually calculated by using the Reporting Date figure
and deducting the post-acquisition profit.

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