Question regarding example 5, Chapter 10, OpenTuition Notes page: 60.

Hope you’re doing well sir!

This example popped some questions, well, if you see the example, it has a requirement to “Prepare the Consolidated SOPL and OCI of the group and calculate the figure of retained earnings to be shown on the SOFP”.

It gave us the Retained Earnings b/f and c/f and all the data to calculate the consolidated retained earnings using the working 3 you taught in the lectures. In the solution at the back of the notes, the b/f and c/f REs are calculated separately in separate workings.

I can also get the retained earnings by subtracting the NCI share and the Dividend proposed by the parent from the profit after tax I calculated in the C.SOPL I just made.

My questions are, am I supposed to show the workings for both the b/f and c/f? The solution at the end doesn’t clear why they were calculated separately and which figure goes in the SOFP.
The Rearnings I got from the SOPL is it the total retained earnings figure I’ll be showing on the C.SOFP?

And also, the b/f and c/f RE data is absolutely useless if that’s the case so, if I got a similar situation in the exam, what should I do?