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Hey all
Can anyone help me to figure out pre and post retained earnings in scenarios like
“IN which Parent buys subsidiary in between the accounting period and it gives both opening and closing balances of subsidiary’s retained earnings.
@cool3rking said:
My reference to this post is“Hilusion” from June 03 attempt
Hillusion’s retained earnings shouldn’t be an issue. As far as Skeptic is concerned:
opening retained earnings = 5400
Subsidiary was acquired for 9 months ( july – march) and the profit for the year is 3000. So the 9 months profit belongs to post- acquisition whereas the 3 months profit would be apportioned and added to pre-acquisitioned retained earnings (3000*3/12 = 750) added to 5400.(5400+750=6150).I hope it’s somewhat clear to you?
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