RETAINED PROFITS BROUGHT FORWARD-group accounts, Financial Accounting

Assignment Help:

RETAINED PROFITS BROUGHT FORWARD

If we recall from the consolidated balance sheet, the group-retained profits should be made up of the holding companies retained profit plus the holding companie’s share of subsidiary companies post acquisition retained profits. The same case applies to computing the retained profits brought forward of the group. The group-retained profits brought forward should be made up of the holding companies retained profit brought forward plus the holding companie’s share of subsidiary companies post acquisition retained profits brought forward.

But we have to make adjustments to the holding companies retained profits brought forward and the subsiairy company’s profits before we get the holding companies sher. The adjustments are for transactions that took place previously that affect the profits of these two companies.

The holding companies retained profits brought forward will therefore be adjusted as follows:

 

£

£

Holding companies retained profit brought forward

 

X

Add: Excess depreciation charged by holding company up to start of the year

 

X

 

 

x

Less : Unraelised profit on opening inventory if holding company had made the sale

x

 

          Goodwill impaired to date (up to the start of the yaer)

x

 

         Unrealised profit on sale of PPE in previous years if holding co. made the sale

x

(x)

Holding companies retained profit b/f  adjusted for conslidation

 

x

 

The subsidiaries profits brought forward will be adjusted as follows before the holding company takes its share:

 

£

£

Subsidiary companies retained profit brought forward

 

X

Add: Excess depreciation charged by subsidiary company up to start of the year

 

X

 

 

x

Less : Unraelised profit on opening inventory if subsidiary company had made the sale

x

 

          Depreciation on Fair value adjustment that should have been charged to date

x

 

         Unrealised profit on sale of PPE in previous years if holding co. made the sale

x

(x)

Subsidiary company’s retained profit b/f

 

x

 


Related Discussions:- RETAINED PROFITS BROUGHT FORWARD-group accounts

#titleaccounting concept.., what is the implication of applying accounting ...

what is the implication of applying accounting concept wrongly

Maximum loss method, a,b,c carried on business and their profit and loss ra...

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-

Calculation of the actuarial gain and losses, Calculation of the actuarial ...

Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000

Standards for accounting and review services, Q. Standards for Accounting a...

Q. Standards for Accounting and Review Services? Statements on Standards for Accounting and Review Services (SSARS) - Statements issued by AMERICAN INSTITUTE OF CERTIFIED PUBLI

International accounting, the role of international accounting toward promo...

the role of international accounting toward promotion of generally accepted accounting principle

Determine the total production requirement for the month, A Company policy ...

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month.  The company currently has a work force of 12 people.  It takes a worker 3 hours

What amount of loss, On January 1, 2011, Doty Co. redeemed its 15-year bond...

On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 1999 at 98 with a maturity date of January 1, 201

Financial accounting, The following items are found in the trial balance of...

The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. 10 marks Summer 2013 Sundry Debtors Rs.160000 Bad Debts written off Rs 9000 Dis

Stock rights, Stock Rights - Stock rights are rights issued to stockholders...

Stock Rights - Stock rights are rights issued to stockholders of a CORPORATION which entitle them to purchase new shares of stock in the corporation for a stated price that is freq

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd