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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidation
Hello sir
When do we have to less purp in both NCI calculations and group retained earnings
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.
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
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.