Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Changes in group structure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Changes in group structure

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 14, 2019 at 9:59 am #552592
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    When a subsidiary is disposed such that control is lost, a gain is already recognised in parent’s separate SOPL.
    But a separate gain is also recognised in consolidated SOPL. Do we eliminate the gain in separate SOPL of parent?

    November 14, 2019 at 12:05 pm #552609
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    Also.. When shareholding in a subsidiary is disposed such that control is retained, what do we do to the gain recorded in separate SOPL of parent? Do we eliminate it?

    Thanks for your time.

    November 15, 2019 at 3:29 pm #552722
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3402
    • ☆☆☆☆☆

    I think it would be a regular gain in the parent’s own P&L (proceeds minus carrying value of investment). This would be eliminated on consolidation – I think the calculation would be horrible and I’m extremely relieved that they wouldn’t ask for it!

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.