Chapter 8

Acquisition at a date other than the beginning

of the financial year.
Profit and loss allocated between pre-
acquisition and post acquisition.
Allocated with reference to facts
Otherwise accrued on a day to day basis
Examined individually
 Allocation of income and expenditure items
Depreciation, assessment rates
Gross profit
Directors remuneration
Interest

Allocation of tax
In line with profit
 Allocation of items in the statement of changes
in equity
Preference dividends
Year end items
Adjustments in respect of previous financial years
Special items

Statement of financial position is as at year end.

 Presentation of consolidated SoCI
Alternative methods:
1. Only post acquisition profit is included in P & L
for the year for the group.
2. Both pre and post acquisition profit of subsidiary
is included, and then profit earned before acquisition
by Sub is deducted