Page 8 - PowerPoint Presentation

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION

Consolidation process

• No journal entries to get to starting point

• If controlled at year end - TBs added

• If not controlled at year end - TBs not added

• Pro-forma journal entries

• Processed to get from starting to end point

• Done every year from scratch using current year TB

• Not IFRS - conceptual convention

• Often asked in tests and exams and ITC

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