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When disposing of some of a subsidary to an associate in group accounts I am unsure of the double entry. I know there would be a cr gain to P&L but what would the other entry be?
Hi,
You would need to record the proceeds received (DR Bank) along with the removal of the subsidiary’s net assets at disposal and the associated goodwill (CR Net assets and CR Goodwill), then you will also need to remove the NCI at disposal (DR NCI).
Have a look at Q1 on the first specimen exam paper and I think some of it is covered in there. If you get stuck on it then just let me know.
Thanks
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