ICL acquired 80% of the ordinary share capital of TL on April 2017 for Rs.25 million.The fair value of non-controlling interest as at the date of acquisition was Rs. 4.42 million. As at the date of acquisition, retained earnings were Rs. 2.1 million and the fair value of identifiable net assets of TL was equal to its book value.
Prepare the Consolidated Statement of Financial Position as at 31st March 2018.
Retained earnings of ICL includes an interim dividend of Rs. 1 million received from TL on 01st March 2018. Dividends were paid by TL using the profit for the year.
Sir, could you kindly specify the entries that should be made with respect to this adjustment?