Chapter 10 example 7

Hi 1) The retained earnings figure in the statement of financial position (635,000) is as at the year end 30 June, 2009 The retained earnings figure as at the foot of the statement of profit or loss ((33,500)) is the loss for the year ended 30 June, 2009 2) We owed the nci at the start of the year $162,750 (25% x 700,000 - 49,000) shareholders' equity brought forward The nci is also entitled to their share of this year's subsidiary retained profits $12,250 (25% x 49,000) So as at the year end, the date we disposed of the subsidiary, we owed the nci $175,000 ($162,750 + $12,250) And that's where the $175,000 comes from 3) The group made a consolidated loss for the year of $33,500 .... and that's why we deduct $33,500 from the retained earnings in the group statement of changes in equity OK now?