1. avatar says

    what if the subsidiary has a loss in its profit and loss account?
    what if the subsidiary has retained loss in its financial position?

    relating to the above, how should i calculate the goodwill and consolidated retained profit/loss?

    • Profile photo of MikeLittle says

      What’s the problem? “Retained earnings at date of acquisition” means ….. retained earnings at date of acquisition!

      If that’s negative, then put it in as a negative!

      I really don’t see what your problem is

      Does that answer you?

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