- This topic has 4 replies, 2 voices, and was last updated 8 years ago by
MikeLittle.
MikeLittle.-
Posts
-
asad
- Topics: 17
- Replies: 15
- ☆
Hi
how to calculate retained earnings for previuos year.when we dont have income statement and not even mention in question about retained earnings in previous year.while working on post acquisition reserve in consolidated financial statement workings.share 250
retained earnings 1200
A’s profit after tax for the year is 600NOw how i have to calculte post acquisition reserve
MikeLittle
- Topics: 26
- Replies: 22602
- ☆☆☆☆☆
So, retained earnings at the year end are $1,200. And that INCLUDES this year’s retained earnings. So the brought forward figure must be $1,200 carried forward less$600 retained from this year = $600.
It’s not a great example – too many $600s around.
Say carried forward is $1,900 and this year’s is $600.
Therefore brought forward must be $1,900 – $600 = $1,300
Ok?
Retained earrings at date if acquisition will be given in a question UNLESS it’s a mid-year acquisition in which case retained earnings at date of acquisition will be the brought forward figure + the pre-acquisition time-apportioned figure from this year’s results
Again, ok?
asad
- Topics: 17
- Replies: 15
- ☆
thankyou very much
actually i am doing kaplan chapter 4 “test your understandings 2″”
now in this i am not getting how the calclute 1000
here it shows post acquistion reserves are (1450-1000) how this 1000 comes fromasad
- Topics: 17
- Replies: 15
- ☆
can you check that example for me i am almost trying to do this for 2 hours but didnt able to get that plese help me through this
MikeLittle
- Topics: 26
- Replies: 22602
- ☆☆☆☆☆
Need more information – I don’t have the Kaplan text with me
MikeLittle- You must be logged in to reply to this topic.