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Having gone throw ur lectures of P2 the 1st example in 1st chapter u have deducted the PUP from sub’s Retained earnings after adjusting the depreciation on the profit but the extra dep charged should be CR to earnings of the buyer which is Ausra in that example… by ur method u have adjusted the dep in sub’s earnings which means NCI will also be effected plz explain
It was previously the case that the profit on an intra-group TNCA transfer was adjusted in the seller’s retained earnings but the excess depreciation on that profit element of the cost to the buyer was credited to the retain earnings of the buyer.
That changed (3 years ago?)
Now the remaining pup, after depreciation has been deducted from the profit, is charged against the retained earnings of the seller
Ok?
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