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Consolidated financial statements

Accountancy

In the working note of Analysis of Profit, do we have to make the time adjustment on both the post acquisition profit or loss and post acquisition reserves? In this problem - practical question no. 1 from icai study material, there are no post acquisition reserves, so time adjustment has been done only on post acquisition p and l..but if post acquisition reserves had been there, what should be done?

Gnanakshi Dandapani

CA Final

★ 13K+

10-Jul-21 20:36

447

Answers (1)

Reserves are not a part of P&L A/c , so they are not part of ascertaing profit or loss for pre and post incorporation ,they directly appear in the balance sheet . So they are not considered in analysis of profit

Sneha

CA Inter

★ 9K+

13-Jul-21 06:02