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CONSOLIDATION

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › CONSOLIDATION

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
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  • August 24, 2021 at 11:00 am #632732
    shaunak22
    Participant
    • Topics: 220
    • Replies: 41
    • ☆☆☆

    Sir i have a doubt from consolidation sum in the kaplan text book the name of the sum is premier and sanford company i wont be able to paste the whole sum here is there a way you could still help me with this doubt

    DOUBT – how is the retained earnings at acquisition date calculated and i check the answer to that sum (4,500 – (3900 × 4/12)) where does this 3900 come form?

    August 29, 2021 at 11:07 am #633352
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    I believe that this question has been answered elsewhere on the forum previously. If memory serves me right the 3,900 is the profit for the year and we are deducting 4 months of the profit to work backwards from the retained earnings at the reporting date to the retained earnings at acquisition.

    Thanks

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