[karimsellim]

and how the consolidated figure of the retained earnings will be calculated according to your way please?

[karimsellim]

Is the above proforma right?

[karimsellim]

I am still confused about it please could you check on me for the steps i am doing

step (1) i translate all the foreign subsidiaries balance sheet items (excluding equity items) at the currency rate at reporting date

– the translated foreign subsidiary equity will be a balancing figure = ( translated foreign subsidiary assets(LESS) translated foreign subsidiary liabilities)
-Post acquisition Retained earnings of the parent company in the subsidiary that will be included in consolidation = total translated foreign subsidiary equity (LESS) cost of investment of the parent company in foreign subsidiary

Step (2) translate the foreign subsidiary p/L figures at the average currency rate during the period

Step (3) bring the foreign subsidiary beginning equity balance at the beginning of the year (then) translate it at currency rate at the end of previous year (ADD) on it the translated profits calculated in step 2 above = expected translated equity at the end of reporting year

step (4) compare the expected translated equity at the end of reporting year calculated in step (3) and compare it with the balancing figure of the equity which was calculated in step (1) = For ex gain or (loss)

[karimsellim]

Kindly could you please tell me how i would deal with the retained earnings in foreign subsidiaries?

[karimsellim]

kindly i want to ask
Is the net assets of the disposed subsidiary that i must include in the proforma for calculation the group disposal gain or loss from the subsidiary disposal,is is

Net assets of the subsidiary at disposal date? OR

(Net assets of the subsidiary at disposal date)*(Parent’s share portion % in the subsidiary before the disposal)?

[Author]

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