V CO acquired 75% of the equity share capital of L CO on 1 September X3. The retained earnings of the two companies at the beginning and end of their financial year were as follows:
| V Co | L Co | |
| $ | $ | |
| Retained Earnings at 1.1. X3 | 174,000 | 168,000 |
| Retained Earnings at 31.12. X3 | 624,000 | 618,000 |
What is the parent company's share of consolidated retained earnings that should be reported in the consolidated statement of financial position of the V Group at 31 December X3?
Suggested solutions:
| $ | |
| Retained Earnings 31.12 L | 618,000 |
| Retained Earnings 1.1. L | 168,000 |
| Profit for the year L | 450,000 |
| Profit after acquistion | 150,000 |
| V share of Profit after acquistion (75%) | 112,500 |
| V's retained earnings 31 December | 624,000 |
| Answer: | 736,500 |
To do the same topic again in ACCA F3 consolidated retained earnings
To do another topic in ACCA F3
ACCA F3 CONSOLIDATED RETAINED EARNINGS