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Ask the Tutor ACCA FR

retained earnings

Xxyzc3y ago
Why are retained earnings not adjusted if an item of plant is found to have a fair value of 3000000 below its carrying amount
P2-D2P2-D2Tutor3y ago#1
In what context is this? Group accounts and fair value adjustments?
Xxyzc3y ago#2
group accounts and fair value adjustments
P2-D2P2-D2Tutor3y ago#3
It is a group adjustment made in the NA working. The adjustment is then reflected on the face of the Group SFP, a reduction to PPE, and then the parent receives its share of the change in the post acquisition retained earnings.
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