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Permanent and Current Consolidation Adjt
Auditing
Ma'am, in permanent adjt also we learned about subsequent change in shareholding pattern and the same is in current concolidation adjustment, what makes them different in such regards [Video Time Stamp: 09:31] Video Details ------------- Advanced Auditing & Professional Ethics (Without SA) Audit of Consolidated Financial Statements #12. Consolidation Adjustment - III
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It’s depends upon the purpose and effect of the same. They are different . Permanent- if after acquisition stage, if share holding is sold or acquired, it doesn’t affect the goodwill, capital reserves, pre post acquisition profits . They are remain same as at the date of acquisition. If, during the current reporting year, the parent has increased/decreased holding, then, We pass adjustments in Current Year Consolidation. Goodwill remains unaffected. It’s year specific so current year adjustment.
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