sir, what makes you think the subsidiary consists of retained earnings on the date of consolidation? is it because our calculations show that it was included in the cost of investment?
when the say the fair value was more than the carry value..this is the profit/gain from sale of non current asset?
I do not understand your first question. As far as your second question is concerned, there has been no sale – it is simply that the assets are worth more than the value appearing in the SOFP.
I do explain all of this in my free lectures.
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