Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

June 2012 – W3 Consolidate Earning (loan note)

This topic has 2 replies, 2 voices, and was last updated 7 years ago by MikeLittle.

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
November 29, 2015 at 3:47 pm #286162
Yazan
Member
- Topics: 32
- Replies: 32
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
- Topics: 32
- Replies: 32
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
Keymaster
- Topics: 26
- Replies: 22705
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
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.