Rules consolidating subsidiaries

There are situations when negative goodwill may arise. where the purchase price is less than the fair value of the subsidiary’s net assets.

P’s year end is 31 December 2010 and it is preparing consolidated financial statements.

Where the parent does not influence the financial and operational policies of the investee, or where share ownership is less than 51%, the investor shall account for the investee using FRS 9 as appropriate, or the FRSSE (effective April 2008) equivalent.

The primary purpose of consolidated financial statements is to present the group financial statements as that of a single reporting entity.

In 2011 Steve was named 'Accounting Technician of the Year' at the British Accountancy Awards and won 'Outstanding Contribution to the Accountancy Profession' by the Association of International Accountants in 2013.

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