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Mid year acquisition consolidated financial statements

Sagot :

Answer:

Sometimes, the parent may not acquire the subsidiary at the start of the financial year. Acquisition may occur during the year . i.e. March 1, October 31, July 1, etc. This is called mid-year acquisition.

If it is a mid-year acquisition, instead of adding all of the income and expenses of the parent and subsidiary company, you add all of the parent's income and expenses to the time-apportioned income and expenses of the subsidiary.