- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
- Posts
when we calculating NCI we just add share of nci in post acqusitin movements in net assets and when calculating group reserves we add parent share in post acquisition retained earnings of subsidiary why this difference in both workings why we simply not take share of parent in post acquisition movements in net assets of subsidiary while calculating group retained earning
please sir help me regards this i will be thankfullThe issue here is that, basically, I’m not hassled with the distinction between an increase in retained earnings as distinct from an increase in general reserve or plant replacement reserve.
So far as I’m concerned, these are increases in shareholders’ funds, increases in equity, increases in net assets. For our purposes, they’re all the same
Nci gets their share and we get our share
You say “we just add share of nci in post acqusitin movements in net assets” yet in my working W4A I talk about their share of post-acquisition retained earnings. Technically, I’m incorrect – it should be their share of increases in equity.
You also say “calculating group reserves we add parent share in post acquisition retained earnings of subsidiary” but in fact, when calculating consolidated reserves, there really ought to be a separate calculation for each different reserve. I merge them all into one and don’t particularly separate revaluation increases from retained earnings – but those two (and others) should be treated separately. The same way, but separately
OK?
- You must be logged in to reply to this topic.