• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

121 Paradigm BPP revision kit book (page 37)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › 121 Paradigm BPP revision kit book (page 37)

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 20, 2018 at 8:38 am #492357
    yuska
    Member
    • Topics: 15
    • Replies: 11
    • ☆

    Hi dear tutors,

    My question is related Retained earnings/(losses) stated on 121 Paradigm task

    In this question we are required to prepare the consolidated statement of financial position for Paradigm as at 31 March 20X3.

    On 1 October 20X2, Paradigm acquired 75% of Strata’s equity shares

    Strata’s
    Retained earnings/(losses) – at 1 April 20X2 (4,000)
    – for year ended 31 March 20X3 8,000

    The following information is relevant.

    (i) At the date of acquisition, Strata produced a draft statement of profit or loss which showed it had made a net loss after tax of $2 million at that date. Paradigm accepted this figure as the basis for calculating the pre- and post-acquisition split of Strata’s profit for the year ended 31 March 20X3.

    In the book Strata’s Retained earnings are calculated as 11200 dollar
    4000 + 6000 =10000 +700 + 500= 11200

    I understand why 700 and 500 dollar are added, but I confused that how 10000 (4000+6000) appears?

    I have watched your video but this issue is still not clear to me.
    Can you please expain obviously it for me ?

    December 24, 2018 at 9:42 pm #492635
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    I don’t really like how they’ve structured the answer as it doesn’t use a net asset working. It is a bit easier if you use one. The net assets at acquisition are the share capital plus the retained losses at acquisition, and those at the reporting date are the share capital plus the retained earnings at that date.

    Try it and see how you get on, and then let me know. I’ll then see if you’re correct but in doing so ignore the answer in the revision kit.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • maryrena77 on The nature and structure of organisations – ACCA Paper BT
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour
  • John Moffat on The financial management environment – ACCA Financial Management (FM)
  • Lekhanaa on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in