ACCA AAA ^UK Syllabus D. Audit of Historical Financial Information - Group accounting audit - Notes ^{32 / 41}

Acquisition in year

• I/S pro rate inclusion of sub

• Calculate GW

• Pro rata NCI in the year

• Think about component auditors

• Materiality will now increase

• Ensure sub uses same accounting policies and same year end as parent

• Analytical procedures may be enough for the audit of this acquisition (if its in the same industry as us)

• New related party transactions (with the sub)

Further acquisition?

e.g. from 60% to 80%

• Any "profit" goes to equity NOT I/S

Partial Disposal

eg. 80% to 60%

• Any profit goes to equity NOT I/S

Full Disposal

eg 60% to 30%

• Any profit goes to I/S

• The sub is taken out completely from group accounts (NA, GW, NCI)

• Is replaced by an associate at FV