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Accounting for pre-acquisition retained earnings losses

KKatie5y ago
Why are retained earning losses added back to subsidiary retained earnings, when calculating group retained earnings.
P2-D2P2-D2Tutor5y ago#1
Hi, This is because the losses will have reduced the retained earnings, so to work backwards from the reporting date retained earnings to get the retained earnings at the acquisition date, we need to add them back. Thanks
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