Post Acquistion

[millitread]

can you explain the meaning of post acquisition

[bryan]

This generally refers to the treatment of 'our' share of profits subsequent to acquisition.<BR>Pre acquisition profit is dealt with in the Goodwill calculation, post acqn., is sent to consolidated reserves.

[Red]

Post/Pre Acquistion is related to profit made by the subsidiary company. Before the subsidiary company was bought, the porfit earned is called pre-Acquistion profit. It is used to calculate the Goodwill only. Post-Acquistion profit is the profit made after the company bought by the parent company. If the parent company does not own all the shares in the subsidiary company, the minority interest will be calculated on the base of the post-acquisition profit only, eg a subidiary is 75 per cent owned by a parent company, then the minority interest will be 25 per cent of post acquistion profit made by the subsidiary company.<BR><BR>Hope this will help.<BR><BR>Best regards<BR><BR><BR>Hong