Highveldt

highveldt acquired samson 1 april 2016
————————————————-Highveldt and samson at 31 March 2017
RE—————————-1april 2016——-160———134
——————————-31 march 2017—-190——–76

Net assets of Samson——————————–AD—–DR——–Post Acquisition period
RE——————————————————-134——210———–76

Highveldt
Note 2)Included in highveldt’s investments is a loan of $60 million made to samson at the date of acquisition.Interest is payable annually in arrears.Samson paidnthe interest due for the year on 31 March 2017 but highveldt did not receive this until after year end.Highveldt has not accounted fornthe accured interest.

if it’s a loan from parent to subsidiary, interest from the subsidiary needs to be deducted from the subsidiary’s retained earnings and added into the parent’s retained earnings

According to your note, i have to deduct 6 interest receivable from re of subsidary and add it over retained earning.But in this case, I do not deduct if from retained eaning of Samson or Sco and i add 6 interest receivable over group retained earning.
I solved by following this way not deducted anything from Sco’s retained earning(SAMSON). If thecase vice verse i think i would deduct 6$of interest from group retained earning.