Goodwill and time apportionment

Your question is confusing! However, let me try to answer the question that I think you are asking.

In a mid-year acquisition consolidation, we need to time-apportion the subsidiary’s results for this year (the year of acquisition)

But the retained earnings as at the start of this year of acquisition are (by definition) entirely pre-acquisition

Try it on a time line:-

Start at “time zero”, draw a line to “start of this year”, draw a line to “end of this year”. Half way through this last line, put a break for pre- and post-acquisition

Above the line from time zero to start of this year, put the figure 85,000

Above the pre-acq part of the line for this year put 7,000 and for the post-acq part put 8,000

That’s the line for a subsidiary that has 100,000 in retained earnings of which 15,000 was earned this year, the year of acquisition. Of that 15,000, 7,000 was earned pre-acquisition and 8,000 post-acquisition.

The pre-acquisition retained earnings were therefore 85,000 + 7,000 = 92,000 and post-acquisition was 8,000

Does that make it clearer?

Yes …. except that, doing a consolidation question “my way” working W1 is always the group structure.

Working W2 is goodwill and, when deducting FV of SNA @ DOA, I would show (using the illustrative figures from my earlier post)
Shares X
Retained earnings brought forward 85,000
Retained earnings (say) 5 months 7,000
Fair value adjustments X

OK

You’re welcome