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Hi sir,
Does note iii belongs to intra-purchase? If it does, i just wonder the reason why it is not deducted from cost of sales like note ii-4million. Thanks in advance.Hi sir,
I am also confused about note ii, I just wonder the reason why the transferring does not make revenue & cost of sales decrease 4m by contrast with note iii.Thanks in advance.Hi sir,
Is total comprehensive income attributable to owners of the parent =111600+2500-700+1000-400? I just wonder the reason why we do not calculate loss like this 400@6/12@75%, gain like this 1000@75%.Hi sir,
consolidated retained earnings=profit after tax (parent company)+retained earnings (parent co’s beginning …). I just wonder why it does not include Subsidiary’s retained earnings .Note (iii) IS an intra-group sale / purchase
In answer to your first question, note (ii) $4 million has NOT been deducted from cost of sales because this is not part of intra-group trading and was included neither in Prodigal’s revenue nor in Sentinel’s cost of sales
and
note (iii) $40 million HAS been deducted from cost of sales as you’ll see if you look in working W(i) in the printed solution and has also been deducted in arriving at consolidated revenue
In answer to your second question, the intra-group transfer of an asset has been included neither as revenue by Prodigal nor as expense by Sentinel
We haven’t treated any other expense (nor profit) like that, have we? Why are you suddenly concentrating only on Prodigal’s share of this gain and this loss?
“I just wonder why it does not include Subsidiary’s retained earnings .” – personally, I wonder why it should!
the subsidiary was purchased part way through this year so the whole of the retained earnings brought forward in the subsidiary are pre-acquisition
The figure at the start of the working for consolidated retained earnings is Prodigal’s own brought forward and then, added to that, we have the consolidated figure for this year
Is that ok?
Hi sir,
One of my classmates told me where I went wrong and we settled the Q1:)So you’re saying that the rest of my responses are redundant?
That’s no problem, thanks for letting me know 🙂
Dear sir,
I just do not want to waste your precious time, I do not dare to say the rest of your responses are redundant. My English is not good, hoping you understand.:)
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