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Chapter 19
Working 2 – Net assets of subsidiary
(W2) Net assets of subsidiary
Acquisition date Reporting date
$ $
Share capital X X
Share premium X X
Revaluation surplus X X
Retained earnings X X
Fair value adjustment X X
PURP adjustment (X)
––––– –––––
X X
––––– –––––
(W3)
Key issues
The total of share capital and share premium from the subsidiary SOFP
should be unchanged between the date of acquisition and the reporting
date.
The subsidiary may (or may not) have a share premium account and/or
a revaluation surplus.
There may (or may not) be fair value adjustments relevant at the date of
acquisition.
Look to see if there is a PURP adjustment required if sales were made
by the subsidiary to the parent.
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