Consolidation and the FNST CBA
spursfan323
Registered Posts: 28 Regular contributor ⭐
Sat my FNST CBA today and found the Consolidation question a little tricky.
Please see attached PDF-
We were taught to use the layout at the top for our workings.
However, in the CBA, you are only provided the next 2 sets of dropdown boxes.
Note they only give one line for Retained earnings!
My question is: what figure should we use in the Goodwill workings for 'Retained earnings'? Is it £48 as per the top workings (as I was always taught), or is the combined Ret. earnings i.e. £48+16?
Please see attached PDF-
We were taught to use the layout at the top for our workings.
However, in the CBA, you are only provided the next 2 sets of dropdown boxes.
Note they only give one line for Retained earnings!
My question is: what figure should we use in the Goodwill workings for 'Retained earnings'? Is it £48 as per the top workings (as I was always taught), or is the combined Ret. earnings i.e. £48+16?
0
Comments
-
Hi,
For the goodwill calculation you would use the $48 as this forms part of the net assets the parent is buying. The $16 post acq would go in the consolidated retained earnings figure.
Best wishes
Steve0 -
Thanks Steve...don't you ever go to bed?! What would we do without you...?
Best regards
Elliot0 -
spursfan323 wrote: »Thanks Steve...don't you ever go to bed?! What would we do without you...?
Haha!! I do have a life outside the world of accountancy, believe it or not!!
Try and forget about IAS's/IFRSs and consolidations for now!!!
Cheers
Steve0
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