regarding AS-23
BRIGHT Ltd. Acquired 30% of East India Ltd. Shares for Rs. 2,00,000 on 01-06-09. By such an acquisition Bright can excise significant influence over East India Ltd. During the financial year ending on 31-03-09 East India earned profits Rs. 80,000 and declared a dividend of Rs. 50,000 on 12-08-2009. East India reported earnings of Rs. 3,00,000 for the financial year 31-03-2010 and declared dividend of Rs. 60,000 on 12-06-2010
Calculate the carrying amount of investment in
Consolidated financial statement of Bright Ltd. As on 31-03-2010
Can anyone pls solve ???? its very urgent ????
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AS-23 ????????????
Replies (3)
Carrying Amount:
Cost 2,00,000/-
Add: Share in profits (80,000 - 50,000)*(10/12)*30% 7,500/-
Less: Dividend 50,000*30% 15,000/-
Carrying Amount 1,92,500/-
sir what about post acq. prfot (i.e. earnings of the F.Y. 2009-10) of Rs. 3,00,000
The treatment for all future profits will be the same. The share in the profits shall be deducted from the carrying amount of investments.
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