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Lateral Q4 Kaplan Revision Kit

This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.

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May 23, 2014 at 1:54 pm #170314
frafiq81
Participant
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Loss to the group in part (a) is $3m, but when the group retained earnings are calculated a gain of $7m is taken? why? shouldn’t a loss of $3m be included?
May 25, 2014 at 1:28 pm #170685
MikeLittle
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Group retained earnings are calculated as “H’s own + H’s share os S post-acq retained – goodwill impaired since acquisition (just our share)”
“H’s own” means H’s retained earnings after the includsion of profit on disposal in H’s own records
OK?
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