Format or formula to Calculate Post Aquisition Reatained Earnings and Pre-Acquisition Retained Earnings.

Hi,

There is no formula as from such, you will either be given it in the question or you will need to calculate it from the information in the question.

Usually we are given the retained earnings at the reporting date and the profits for the year. You would then need to pro-rate the profits from the date of acquisition and deduct these from the retained earnings at the reporting date to get the retained earnings at the acquisition date.

Thanks

Hi,

When you come across the situation in a question, then try to solve it and see how you get on. If you are struggling then let me know which question it is and I’ll happily help.

Thanks