June 2012 – W3 Consolidate Earning (loan note)

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November 29, 2015 at 3:47 pm #286162
Yazan
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Hi Sir,
Just a quick question, when you are working out the Consolidated Retained Earnings (w3) why do you only cancel the loan note interest and not the loan note itself?
Kind regards,
yazan
November 29, 2015 at 3:48 pm #286163
Yazan
Member
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This is in regards to your revision lecture. I assume I should always be cancelling the loan notes between the parent and sub?
November 29, 2015 at 10:09 pm #286235
MikeLittle
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Because the loan note liability features in the statement of financial position, not in the statement of profit or loss
Only the loan interest affects retained earnings, not the loan itself
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