02-25-2010, 01:25 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by eima</i>
<br />actually, i want to know what means pre - and post acquisition and why pre-acquisition income of the subsidiary is treated differently from post-acquisiton income. I'm very confuse. help me....[B)]
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The purpose of the consolidated Statement of comprehensive income is to show the financial performance of the group as a whole for the year. As the consolidated Statement of comprehensive income is prepared after control has been acquired by the Parent company and the group came into existance after the control was acquired, all the figures of the Statement of comprehensive income must be of post-acquisition, ie after control has been acquired.
Since the subsidiary was not controlled by the parent company before the acquisition, the pre-acquisition incomes and expenses will not be included in the consolidated statement of comprehensive income
<br />actually, i want to know what means pre - and post acquisition and why pre-acquisition income of the subsidiary is treated differently from post-acquisiton income. I'm very confuse. help me....[B)]
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
The purpose of the consolidated Statement of comprehensive income is to show the financial performance of the group as a whole for the year. As the consolidated Statement of comprehensive income is prepared after control has been acquired by the Parent company and the group came into existance after the control was acquired, all the figures of the Statement of comprehensive income must be of post-acquisition, ie after control has been acquired.
Since the subsidiary was not controlled by the parent company before the acquisition, the pre-acquisition incomes and expenses will not be included in the consolidated statement of comprehensive income