[mihaifrunza]

Hello there,
Strictly for SOFP, when you consolidate in Retained earnings profits from subsidiary do you consolidate it with including or excluding dividends (50 net profit, 30 after dividends).

Parent (after receiving dividend of 20)

Cash +20
Retained earnings +20
So i need to add an additional 30 to include the entire profit of 50 made by subsidiary

Subsidiary (prior to payment of dividend

Assets 100
Liabilities 50
Retained earnings 50

Subsidiary (post payment)
Assets 80
Liabilities 50
Retained earnings 30

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