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Chapter 20
Example 14.4 cont'd
(W1) Group Structure
Shareholding in S (Kamara) 75%, NCI% 25%. Acquisition date = 1/1/20X4
Effective shareholding in SS (Merse) = 75% × 80% = 60%, NCI% = 40%.
Effective date of control is 30/06/20X4.
(W2) Net assets of subsidiary (Kamara)
Acquisition Reporting date Post-acquisition
$000 $000 $000
Share capital 175 175
Retained earnings 69 105 36
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244 280 36
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(W2) Net assets of sub-subsidiary (Merse)
Acquisition Reporting date Post-acquisition
$000 $000 $000
Share capital 88 88
Retained earnings 42 52 10
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130 140 10
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