The Michi Company owns 40% of The Nipigon Company. On 31 December 20X7, Nipigon sold to Michi a non-current asset for P1,020,000. The carrying amount in Nipigon's books on 31 December 20X7 was P820,000. The consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. Under PAS 28, what adjustments should be made to the consolidated statement of financial position figures for non-current assets and retained earnings?

The Michi Company owns 40% of The Nipigon Company. On 31 December 20X7, Nipigon sold to Michi a non-current asset for P1,020,000. The carrying amount in Nipigon's books on 31 December 20X7 was P820,000. The consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. Under PAS 28, what adjustments should be made to the consolidated statement of financial position figures for non-current assets and retained earnings?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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