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Hi Tutor,
Extremely puzzled why we would need to add group profit as calculated per formular to the retained earnings WITHOUT eliminating the parent’s gain in its separate financial statements when calculating consolidated retained earnings?
Does the parent’s gain on investment flow and consolidate via income statement consolidation as well but we don’t deduct from parent’s R/E and then add whole on top whole portion of group’s profit?
Thanks millions!
I think it’s “normally” the case that the parent has not yet accounted for the disposal – certainly it seems that way to me that Graham seems to believe that CFOs are not capable! maybe he’s waiting for your generation of youung bloods to come through and then future generations of ACCA students will be able to rely on their predecessors ( you ) being able to do the job properly!
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