In W2 while calculating the retained earnings of Dace we take into consideration the fair value of Dace's Inventory 16.000 $. How does that affect the retained earnings until the day of acquisition (30 June 2009), since Dace have sold all of them before the year end (Dace sold them from 30 June 2009 until 31 Augutst 2009)???
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Group Accounts:Comprehensive Example - Chapter 9
13y ago#1Because, at the date of acquisition, her profits are understated! And, unusually, her post-acquisition profits are overstated
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