When control of a subsidiary is acquired on a date other than the first day of a fiscal year, excess amortization expenses are pro-rated to include only the post-acquisition period.

Question

Quizplus · Accepted Answer

When a subsidiary is acquired partway through a fiscal year, only the portion of amortization expenses that pertains to the period after acquisition is recognized in the consolidated financial statements.

When Control of a Subsidiary Is Acquired on a Date