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Chapter 19
3.7 Pre and post-acquisition
In the previous examples the parent acquired its shares in the subsidiary on the
reporting date. In the case where the parent made the purchase some months or
years prior to the reporting date, the subsidiary's reserves must be split out into pre
and post-acquisition reserves.
The parent has influenced any change in reserves since the acquisition date only,
e.g. the parent can only share in the change in asset value after acquisition. Any
changes before this date would have been due to the influence of the previous
parent.
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