- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Hi sir,
P co.(which has Subsidiary) has an investment in A Co. (association with 30%). If Parent wants to prepare consolidated SOFP, it is determined that impairment loss is 20 000 $ e.g
i know that this amount of 20 000 $ will be deducted from the amount of investment in association. but i dont know we will recognise it in calculation of Group Retained Earning?“but i dont know we will recognise it in calculation of Group Retained Earning?”
You say that you recognise that the $20,000 must be reduced from the “Investment in Associate” account – so that’s a credit entry
Where could the debit entry possibly go?
There really is only one place and that’s a reduction of the Retained Earnings – it’s a debit / expense / charge to the statement of profit or loss
OK?
- You must be logged in to reply to this topic.