AC506 lecture 7. Pre-acquisition reserves Consolidated profit and loss account. Pre- and post-acquisition reserves.
=> Intragroup sales and purchases amounts to be eliminated
=> Amount to be eliminated = 2,700/6 = €450
=>Minority interest of Pear is 10% of the ordinary shares; and
=>Minority interest of Plum is 10% of the ordinary shares and 80% of the preference shares