Page 420 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 20

Example 12.6

(i) Investment in associate

$000

Cost of investment 600
P% × post acquisition profits (30% × (800 – 720)) 24
Less: impairment (10)

–––––

614
–––––

(ii) Consolidated retained earnings

$000
P's retained earnings 4,000

S: 80% × (1,500 – 700) 640
A: 30% × (800 – 720) 24

A: impairment (10)
–––––
4,654

–––––

412