Page 345 - F1 Integrated Workbook STUDENT 2018
P. 345
Consolidated Statement of Financial Position
The following journal entry will be required in order to record the unrealised profit if
the parent sells (profit in the books of the parent, hence no impact on NCI):
Dr Retained earnings of the parent within the group retained earnings by the
difference in CA
Cr PPE by the difference in CA
Dr PPE by the difference in depreciation
Cr Retained earnings of the parent within the group retained earnings by the
difference in depreciation
The following journal entry will be required in order to record the unrealised profit if
the subsidiary sells (profit in the books of the subsidiary, hence will impact on NCI):
Dr Post acquisition reserves of the subsidiary within the group retained earnings by
the difference in CA (this should be the groups share of the CA)
Dr Post acquisition reserves of the subsidiary within the NCI by the difference in
CA (this should be the NCI share of the CA)
Cr PPE by the difference in CA
Dr PPE by the difference in depreciation
Cr Post acquisition reserves of the subsidiary within the group retained earnings by
the difference in depreciation (this should be the groups share of the
depreciation
Cr Post acquisition reserves of the subsidiary within the NCI by the difference in
depreciation (this should be the NCI share of the depreciation)
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