1. avatar says

    Instead of deducting 4000 from each revenue and COS..shouldn’t 5000 have been deducted? Surely the sale was made at 5000 so if I deduct 4000..wouldn’t that make my revenue overstated by 1000?
    Please sir Mike need your help!

    • Profile photo of MikeLittle says

      Sure it’s allowed. However!!!!!! You will lose the marks available for cancellation of the intra-group trade! Why would you want to ignore it – it must be one of the easiest bits of all the consolidation adjustments!

    • Profile photo of MikeLittle says

      Yes, the full profit for the year goes into Retained Earnings but, of course, the nci want their share of these profits so the transfer from Retained Earnings to nci will reduce Retained Earnings (if the year’s results had shown a loss, the nci would have been charged with their share of that loss)

      Hope that helps

  2. Profile photo of nkmile64 says

    Brilliant lecture!

    I finally understood that the figures in this Statement of Changes in Equity are the same figures that will appear in the Consolidated Statement of Financial Position. Thank you Sir Mike.
    I would just like to ask whether it is possible that we will be asked to draw up a Consolidated Statement of Changes in Equity in the context of Question 1. Has this been asked before?

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