Greetings
I was just doing the practise questions in your website for consolidation statements part 2
There was something saying that the company took over another during the incopration
Therefore the markscheme says that there was no retained earnings
I don't exactly understand this term named incopartion..does it mean the company was newly formed so it has no retained earnings
Ask the Tutor ACCA FA
Incopoaration
5y ago#1Incorporation of a company means the formation of the company.
So the date of incorporation is the date the company was first formed, and therefore there were not retained earnings at that date.
I do explain this in my free lectures on consolidations. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Oh okay thank you very much
I will also watch your video
5y ago#3You are welcome :-)
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