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Hi, I am struggling to identify the post acquisition retained reserves in question 49: Foreign operation. The question is in the BPP practice and revision kit.
the retained reserves for Odense on the date of acquisition are given as 2,100,000 danish krone. The retained reserves in the post acq period are given as $138000 till 31 Dec 2015.
The answer given in the revision kit gives a different structure of workings as compared to what I have been learning from the opentuition lectures.
Please can you give me the working for net assets (W2) from what I am used to from watching the opentuition lectures on foreign subsidiaries.
Hi,
I do the answers differently to the way it is done in the other materials.
I’ve not got the revision kit to hand but the post acquisition reserves is usually the balancing figure that is calculated in the working that translates the subsidiary net assets. This figure can then we used in the NCI and group retained earnings workings.
Thanks
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