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Hello sir,
In working of GRE, do we take post acquisition retained earnings of parent co. Or the whole post acquisition reserve with parents’ share? Please explain sir.
We take the WHOLE of the parent’s retained earnings figure + the parent’s share of the subsidiary’s POST-ACQUISITION retained earnings
If you stop to think about it for a moment, we are incorporating into the Group Retained Earnings figure for the consolidated statement of financial position those retained earnings of the group that have been achieved whilst the relevant companies have been under the parent’s control
So that’s the whole of the parent’s retained earnings but the parent’s share of only the post-acquisition retained earnings of the subsidiary
H’s own + H’s share of S post-acq retained – goodwill impaired since acquisition (just our share)
OK?
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