FR (Page 338)

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FINANCIAL ACCOUNTING III DR. Cost of control CR. Group retained profits (With the holding company’s share of the loss) ii) Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the subsidiary company has been held for a period of less than 12 months. The consolidation procedure does not change becausewe are dealing with the assets and the liabilities of the two companies as at a certain date.. However, the following two points need to be considered; a) Computation of retained profits acquisition As the holding company has acquired the subsidiary company while trading is taking place, then it
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