Economics · Consolidated Financial Statements
If bonus shares are issued out of pre-acquisition profits, what will be its effect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It decreases the holding company's percentage of shareholding
- 2It drastically reduces the net profit of the subsidiary
- 3No effect on the consolidated balance sheet total✓
- 4Direct effect on the consolidated balance sheet assets
Correct answer
No effect on the consolidated balance sheet total
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