Study RoomGeneralJust working through some consolidation scenarios with a mid year acquisition and wondering how much the examiner cares about just straight lining the sub’s profit vs using a more nuanced split when it’s clearly seasonal. Our AI has a retail sub acquired in August and the sector’s heavily weighted to Q4, so pro rating 8/12 of revenue and costs over the year feels lazy but I’m not sure if the permitted exhibits would give enough detail to do anything else. From what I remember of past CS papers there’s usually a judgement mark for not blindly prorating when it could materially distort the group’s gross margin, but I can’t tell if that’s a marking point for the recommendation or just a risk flag to mention.
Mid year acquisition and seasonal profit in CS consolidation
Asked by Grace W. · 3h ago
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