POST-ACQUISITION PROFITS OR LOSSES :
Profits earned or losses incurred by the subsidiary company after the date of acquisition of its shares by the holding company are called post-acquisition profits or losses. Both the holding company and the minority shareholders should share such profits or losses in proportion to their respective holdings. The minority shareholders’ share in such profits should be added to the amount of minority interest while their share in such losses should be deducted. So far as the minority shareholders are concerned, there is no difference between the pre-acquisition profits or losses and the post-acquisition profits or losses. But, so far as the holding company is concerned, it makes a lot of difference. The holding company’s share of such profits or losses should be treated as revenue profits or losses and as such credited or debited to its profit and loss account.