Why ₹900 Becomes ₹810? Revaluation Reserve & OCI in Consolidation | CA Final FR | Ind AS

Revaluation Reserve & OCI in Consolidation | One Concept Every CA Final Student Must Master Do you know why the Revaluation Reserve in the Consolidated Financial Statements changes when the parent owns less than 100% of the subsidiary? This is one of the most misunderstood concepts in Financial Reporting, and memorising journal entries won't help unless you understand the logic. 🎥 In this reel, we explain: ✅ Revaluation Reserve in Consolidation ✅ Allocation of OCI between Parent & NCI ✅ Why ₹900 becomes ₹810 in Consolidated Financial Statements ✅ The concept behind the adjustment—not just the accounting entry Quick Summary: Suppose the Parent earns a Revaluation Profit of ₹200 every year, while the Subsidiary earns ₹100 every year after acquisition. ➡️ With 100% ownership, the Consolidated Revaluation Reserve becomes ₹900 (₹600 + ₹300). ➡️ With 70% ownership, the subsidiary's reserve is shared: • Parent's Share = ₹210 • NCI's Share = ₹90 Therefore, the Consolidated Financial Statements will show: 📌 Revaluation Reserve = ₹810 📌 NCI = ₹90 Once you understand this flow, concepts like OCI allocation, Parent vs NCI, and consolidation adjustments become simple and logical. At SAGC, we don't believe in memorising. We teach you the "WHY" behind every concept so you can solve any exam question with confidence. 🎓 Try before you buy! 🔥 Get a FULL 2-WEEK FREE DEMO with COMPLETE ACCESS to our Regular Batch. ✔ Live Classes ✔ Recorded Lectures ✔ Study Material ✔ No Payment ✔ No Hidden Conditions ✔ Join only if you're comfortable. 📞 📧 register@ 🌐 #CAFinal #FinancialReporting #FR #IndAS #Consolidation #OCI #RevaluationReserve #BusinessCombinations #ParentAndNCI #AccountingConcepts #ConceptClarity #CAStudents #CAExamPreparation #May2027 #Nov2027 #CAClasses #LearnWithSAGC #AccountingMadeSimple #FutureCA #CharteredAccountant