[shadlinsky90]

Hey Mike,

While consolidating SOFP of parent and subsidiary do we always subtract finance cost of deferred consideration which is a loan note from retained earnings of Parent Co. ?
Almost in all past papers the procedure is to deduct Finance Costs from Parents Retained Earnings while consolidating group balance sheets. Yet in a very recent mock exam I have encountered a situation where finance cost is not charged at all.
For your reference please check question number 32 of Mock Exam in 2016 BPP’s revision kit.

Thanks!

[Author]

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