A shareholder was concerned that following an acquisition the profit from operations of the parent and subsidiary

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A shareholder was concerned that following an acquisition the profit from operations of the parent and subsidiary were less than the aggregate of the individual profit from operations figures. She was concerned that the acquisition, which the directors had supported as improving earnings per share, appeared to have reduced the combined profits. She wanted to know where the profits had gone. Give an explanation to the shareholder.

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Financial Accounting And Reporting

ISBN: 9780273778172

16th Edition

Authors: Mr Barry Elliott, Jamie Elliott

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