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Date of acquisition or date of consolidation

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ACCOUNTANT

Student

590 Points Posted on 29 February 2020

The following entry will be recorded on which date. . Whether Date of acquisition or date of consolidation :

Net assets a/c Dr

Good will a/c Dr

To minority interest a/c

To investment a/c

Please clarify. .. Thank you

Replies (2)

Quick Summary

This discussion clarifies the correct date to use for recording financial entries related to acquisitions and consolidations. It explains that under IFRS 10, group entities typically need to have financial statements drawn up to the same reporting date for consolidation. If reporting dates differ, additional financial information is required unless impractical, ensuring consistent consolidation.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 18 April 2020

Consolidation and same reporting date – The basic requirement in IFRS 10 is that each group entity’s financial statements are drawn up to the same reporting date for consolidation purposes. Where reporting dates differ, additional financial information is prepared for consolidation purposes, unless impractical. [IFRS 10 B92]. The financial statements of the parent and its subsidiaries used in the preparation of the consolidated financial statements shall have the same reporting date. When the end of the reporting period of the parent is different from that of a subsidiary, the subsidiary prepares, for consolidation purposes, additional financial information as of the same date as the financial statements of the parent to enable the parent to consolidate the financial information of the subsidiary, unless it is impracticable to do so.