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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › F7 – CONSOLIDATED ACCOUNTS
Hi,
When consolidated accounts are prepared, parent and subsidiary’s assets and liabilities are added together.Investment in subsidiary in the books of parent is replaced by net assets of subsidiary. I am a bit confused regarding subsidiary’s share capital and retained earnings. why are they not simply added to parent entity’s share capital and retained earnings. Your help would be highly appreciated.
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