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Profit/Loss on Disposal of Subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Profit/Loss on Disposal of Subsidiary

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  • March 23, 2021 at 4:06 pm #615046
    james8500
    Participant
    • Topics: 68
    • Replies: 17
    • ☆☆

    Hi

    Can you please tell me whether the profit or loss on the disposal of a subsidiary comes before PBIT on the consolidated P/L? Therefore, is it deducted from PBIT and would it impact ratios such as NPM, ROCE..?.

    Thanks

    March 27, 2021 at 7:12 am #615289
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    The figure would appear as part of the discontinued operations figure and so in a separate line item within the group profit or loss account. It would therefore not impact the ratios that you mention above.

    Thanks

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