• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Paradigm Co.Consolidation of financial statements

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Paradigm Co.Consolidation of financial statements

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 30, 2025 at 7:44 am #717054
    anjali84
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hello,

    In BPP Practice book, Q.330, I did not get how they calculated Retained Earning as (6000)?
    It should be (5000), because we have given opening loss of 4000, and the subsdiary made a draft stating that they have incurred loss of 2m during the year.
    Since it is a mid year acquisition, we need to split it, it would be 1m for pre and 1m for post.

    So opening loss + pre loss= total loss to be included in Retained Earnings for Goodwill
    It would be (4000)+(1000)= (5000) total loss.

    How they have included the whole 2m loss in pre period?

    Can you please help me in this question?

    May 4, 2025 at 11:19 am #717139
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    The key piece of narrative information that you are missing is that in the additional information it says that the loss of $2 million is what has been made at that date, i.e. this is the profit for the six-month period and so no pro-rating is required. In this question the profits do not accrue evenly during the year.

    Thanks,

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Goodness on Accruals and Prepayments (part b) – ACCA Financial Accounting (FA) lectures
  • mrjonbain on What is Assurance? – ACCA Audit and Assurance (AA)
  • Ejueyitsi-Toju on What is Assurance? – ACCA Audit and Assurance (AA)
  • sadik.sadka on How to make the best use of OpenTuition
  • SONIC916 on Lessee accounting – ACCA (SBR) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in