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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › group retained earning
Explain what is group retained earning and how is it computed
can someone give me the steps in theory for the computation part?
Thanks
In basic terms for a simple group with a parent and a single subsidiary company it would be the parents own retained earnings to date plus their share of the subsidiary’s profits earned since acquisition date.There are a number of different adjustments that might have to be made based on factors such as unrealized inter trade profits which have not been realised outside the group which complicate the calculation.
How is Group RE adjusted if the subsidiary’s RE has decreased post acquisition.. ?
Any impairment loss arising from goodwill should the added to the parent retained earnings as well.