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Analysis of profit

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Querist : Anonymous (Querist)
18 December 2011 What does Analysis of profit means in consolidating the Financials of Subsidary Company and how to prepare it for finding the Minority Interst and Cost of Control
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CA CS PRASHANT

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CA CS PRASHANT (Expert)
18 December 2011 Analysis of Profit means...

The profit of subsidiary company has to be bifurcated into pre acq profit and post acq profit in respect to the date of acq by the holding company of subsidiary company.

The pre acq profit will go to reduce cost of acqusition amount and the post acq profit will go to the P and L account of consolidated financial account.
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