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  1. avatar says

    hi mike
    just confused a little – working 3 ( consolidated retained earnings )can also be for other types of reserves like – revaluation reserve?. We can get a question with consolidating other reserves like share premium or revaluation reserve. If yes please send a worked example to clarify.
    Thanks

  2. avatar says

    Why do we not have share premium in subsidary incorporated into CS of FP?Beacause it was formed before acquisition?what’s the treatment for new share premium,that is generated by subsidary issuing new share after acquisition?

    • Avatar of MikeLittle says

      @ginduja21, because it’s like a “profit” – it’s called a bargain purchase. We USED to have a complicated way of crediting negative goodwill to the retained earnings over a number of years, but that method has now gone.

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