Sandown 12/09

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  • November 24, 2012 at 1:24 pm #55693
    Avatar of rob9151
    rob9151
    Participant

    Hi, in Sandown 12/09, it stated the following in nr (iv): Sandown sold an equity investment for $11m. At the date of the sale it had a carrying amount of $8.8m and had originally cost $7m. This gain of $1.8m I see is not recorded in the S of P/L. Would this be recorded in the statement of changes in Equity? As I don’t see it recorded there either.. I would assume the gain in value should have been recorded? In Winger 2.5 Pilot Paper, the asset that was sold for $95m had a cost of $50m and a carrying value of $80m and that gain of $30m was recorded in the retained earnings section in the statement of changes and equity.. Please advise, as I am a bit confused. Thanks for the feedback.

    November 24, 2012 at 4:17 pm #108572
    Avatar of MikeLittle
    MikeLittle
    Keymaster

    Is this not dependent upon when the gain of 1.8 occurred? If it occurred in a prior year, the gain would have been recorded and be reflected within the retained earnings brought forward. I don’t have the question to had and nor do I have easy access to it so I hope that this explains the problem

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