Adjustments for gain of investment

You write these:

“In general:
For a parent, a gain on investment of 1700
CSOFP : Add 1700 to group retained earnings
CSOPL : Add 1700 to SOPL under investment income”

as though you believe this to be the double entry. The debit and credit entries

That’s clearly not correct

The correct double entry is:

Dr Investments (NOT debit group retained earnings!)
Cr Gain on investments in the statement of profit or loss

You also write:

“For Palistar,
• Post acquisitiion

Gain on investment 1700”

For the parent entity there is no such thing as pre- and post-acquisition

For the question Palister and Stretcher, the $1,000 gain in the fair value of the Stretcher investments is part of the fair value adjustments in arriving at the goodwill figure in working W2

In terms of double entry it is:

Dr Investments in Stretcher’s records 1,000
Cr Stretcher retained earnings pre acquisition 1,000

Then we move to the post-acquisition increase in the value of Stretcher’s investments

the double entry here is:

Dr Investments in Stretcher’s records 900
Cr Stretcher’s retained earnings post acquisition

Now, that’s a post acquisition increase in the value of Stretcher’s profits and is divided in proportion 75% / 25% with the non-controlling interest

In order to achieve this, the 900 is added to the retained earnings for Stretcher in working W3, we arrive at the post-acquisition element (in the normal manner) and that increased post-acquisition retained earnings figure is then split 75% taken to consolidated retained earnings and 25% taken to the nci in working W5A

OK?