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Are retained earnings b/f always adjust by removing pre acq figure?
Reference is example 5 of chapter 10.i dont understand why the figure of retained earninng b/f has been this adjusted.
Many thanks
If the acquisition was earlier than last year, then yes
For example, we’re consolidating to 31 December 2015 and we acquired in 2009
The retained earnings brought forward as at 1 January 2015 will be calculated by deducting the pre-acquisition retained earnings from the overall subsidiary retained earnings brought forward
Ok?
Hello Mike,
I will want you to explain this better. Why are we deducting per_acquisition retain earning after 7yrs of acquisition according to your example.
@mikelittle said:
If the acquisition was earlier than last year, then yesFor example, we’re consolidating to 31 December 2015 and we acquired in 2009
The retained earnings brought forward as at 1 January 2015 will be calculated by deducting the pre-acquisition retained earnings from the overall subsidiary retained earnings brought forward
Ok?</blockquoteHello Mike,
I will want you to explain this better. Why are we deducting per_acquisition retain earning after 7yrs of acquisition according to your e
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