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Yup, Ok! Thanks sir!
Not related to the question above, but just to get confirmation, when consolidating, for the pre-acquisition retained earnings in Goodwill calculation (W2) and the pre-acquisition retained earnings in calculation for Consolidated retained earnings (W3) are the pre-acq retained earnings the same?
Hi sir,
Unfortunately, I have copied the question exactly as in the book from the beginning to the end of the question, so I assume it is a stand-alone MCQ. I would take a picture of the question and attach it over here for you to see if I could!
Assuming this question does lack necessary information (the 8% wasn’t in the question too.. I didn’t miss it. Was finding it for hours!!), can I ask in general, do we deduct the interest on loan, if any, to the profit of the subsidiary to arrive at the profit to be attributable to the Parent as well as NCI?
For this question, Brigham holds a $5 million loan note from Dorset, meaning Interest on loan would be paid by Brigham to Dorset right? As the loan note is from Dorset. If so, Dorset would be receiving the interest on loan, thus we are deducting it from its profit, to cancel out the intra group transaction, is my understanding correct?