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The question relates to the chapter 4 changes in composition of a group… The gain\loss in group was not included in con. retained earnings because the whole interest in the sub is sold at y\e right??(Diana and liga question)… The GAIN IN PARENT is included in retained earnings in the Diana and liga question but it was not included in the raimanda and dainius question why?(in raimanda and dainius question holding was 80% and 20% was sold)
There are no consolidated retained earnings at the year end – there is no subsidiary at the year end so no consolidation!
In Raimonda 60% was sold not 20%. And the 60% is 60% of the 80% holding so 60% x 80% = 48% sold
We don’t know what the retained earnings of Raimonda look like after the disposal has been accounted for – we’re not asked for the figure. In Diana the Diana situation is shown because Diana is now the only company (having disposed of Liga at the year end)
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