Can anyone please tell me how to allocate Loss from Analysis of profit to Consolidate PL and Minority Interest and how much we can allocate to minority and how to adjust exess loss.
plz urgently need to get it cleared...
Excess loss is adjusted against the majority share. When there is profit in the company, first majority loss is recovered to the extent of share of minority loss borne by the majority. Further profits are distributed in the proportion of shareholding.
Please refer practice manual AS 21 problem.
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