Mid-year acquisitions
In this lesson, you'll learn how to handle mid-year acquisitions in consolidated financial statements. When a parent company acquires a subsidiary partway through the year, you need to time-apportion the subsidiary's revenue, expenses, and profit to reflect only the months it was under the parent's control.
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In this lesson
- 0:00 Midyear acquisitions and time apportionment
- 0:29 Calculating consolidated revenue and expenses
- 1:14 Profit split between parent and noncontrolling interest
- 1:38 Worked example: Geronimo and Palmer consolidation
- 2:17 Attributing profit to equity holders and minorities
About this lesson
This is crucial for preparing accurate consolidated statements of profit or loss, and it applies to calculating profit attributable to non-controlling interests too. You'll work through a practical example showing how to include 100% of the parent's figures alongside the time-apportioned subsidiary amounts, then split the final profit between equity holders of the parent and non-controlling interests using the correct ownership percentage and time period.
Duration: 3m
Transcript
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