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Gain or loss on disposal of a controlling interest.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Gain or loss on disposal of a controlling interest.

  • This topic has 2 replies, 2 voices, and was last updated 12 years ago by ipfm.
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  • November 24, 2012 at 6:42 pm #55705
    ipfm
    Member
    • Topics: 1
    • Replies: 8
    • ☆

    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

    November 25, 2012 at 4:45 pm #108593
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    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 )

    December 1, 2012 at 10:08 am #108594
    ipfm
    Member
    • Topics: 1
    • Replies: 8
    • ☆

    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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