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Consolidation

This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.

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June 13, 2021 at 9:12 am #625139
Priyanka19
Participant
- Topics: 32
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Hello sir
When do we have to less purp in both NCI calculations and group retained earnings
June 13, 2021 at 9:25 am #625144
John Moffat
Keymaster
- Topics: 56
- Replies: 53348
When goods have been sold from one company in the group to another company in the group, and some of those goods are still in inventory at the end of the accounting period.
This is all explained in my free lectures on consolidations. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
June 13, 2021 at 12:51 pm #625157
Priyanka19
Participant
- Topics: 32
- Replies: 20
I did not understand
I did a question where in the calculation of NCI and group retained earnings we less purp
But I only know is parent is, seller we deduct it from group retained earnings and if Subsidiary is the seller we deduct purp in NCI calculation
June 13, 2021 at 2:51 pm #625168
John Moffat
Keymaster
- Topics: 56
- Replies: 53348
If the seller is the subsidiary then the PURP reduces the retained earnings of the subsidiary when we come to consolidate and this means that both the group retained earnings and the NCI are both calculated using the reduced retained earnings of the subsidiary.
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