Hi, i would like to understand the working of gain on disposal in a question of bpp kit
(Grange). please help me with this i am very confused i.e. sometimes the disposal say 20% is considered straight deduction from parent whereas other times like in said question, it is taken from NCI’s angle i.e. 20% increase in NCI from existed NCI share. Please explain when to choose either parent’s approach and when to choose NCI’s approach. Many thanks
Hi ipfm. I’m not aware of the alternative approaches adopted by BPP, sorry
Is it perhaps in the differing situations of simply an adjustment to parent’s equity in the case of a part of a continuing subsidiary compared with the sale of part of a subsidiary leading to us no longer having control ( because it’s now an associate, an investment or a complete disposal )
Dear Mr Little,
Thanks for your response. No its not related to adjustment in parent’s equity.
However, can you please tell me that one approach which should apply in all cases i.e. which formula to be used in all cases of disposal where control is lost?Kindest regards
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