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If there is a change in fair value of parents asset then will it always be included in the consolidated retain earning
Yes – the consolidation is for the benefit of the shareholders of the parent entity so any changes in the parent’s asset values will be reflected in the consolidation
Will it always be reflected in retained earnings? No, sometimes the gain goes through comprehensive income (revaluations and some financial instruments)
June 2013 consolidation question
subsidiaries retain earning in the statement of financial position,under equity section:
Retained earnings/(losses) – at 1 April 2012 $ (4,000)
– for year ended 31 March 2013 $ 8,000At 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 2013.
Sir can u show me the pre and post acquisition retain earning?????its little bit confusing
and plz give explanation or reason so that i can understand it properly…….
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