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group retained earning

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › group retained earning

  • This topic has 3 replies, 4 voices, and was last updated 6 years ago by akilofisayo.
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  • May 23, 2018 at 2:03 pm #453594
    wheelz
    Member
    • Topics: 7
    • Replies: 3
    • ☆

    Explain what is group retained earning and how is it computed

    can someone give me the steps in theory for the computation part?

    Thanks

    May 23, 2018 at 4:46 pm #453625
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2489
    • ☆☆☆☆☆

    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.

    May 24, 2018 at 5:59 pm #453809
    Shaza
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    How is Group RE adjusted if the subsidiary’s RE has decreased post acquisition.. ?

    August 26, 2018 at 11:08 am #469504
    akilofisayo
    Member
    • Topics: 0
    • Replies: 1
    • ☆

    Any impairment loss arising from goodwill should the added to the parent retained earnings as well.

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