[Mia413]

Noted, will use topic in my future questions instead.

To summarise my question,

The land used as part of the purchase consideration has a carrying amount of $3 million in the consolidated financial statement, but It’s fair value is $5 million. I understand that there is a $2 million gain for the land, shouldn’t this $2 million gain go straight to P/L (retained earnings). However, the answer show that both Retained Earnings and Other Components of Equity (OCE) increased by $2 million each.
I’m confused why both retained earnings and OCE are increased by $2 million in this case. Isn’t this double counting the same fair value uplift from the land?

Thank you.

[Mia413]

Thank you Smith

[Mia413]

Thank you Stephen for your help and answer!

[Author]

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