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Disposal 10% share and keeps control

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Disposal 10% share and keeps control

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • May 17, 2024 at 12:12 pm #705559
    jingdong
    Participant
    • Topics: 88
    • Replies: 115
    • ☆☆☆

    Dear Tutor, would you please help me this question from SBR Pre-june 2024 mock exam.

    in the question1 exbition 2: it said that “disposal of 10% preceeds $22m was credited on Other income in the consolidated sttement of P/L” Accordingly in my opinion, the adjustment for equity onwer’s changes may be like that Dr: other component euqity $15.8M Cr: NCI $15.8M, would you please help me to verify it? the answer is that Dr: retained earning $22m, CR: NCI $15.8, Cr: other component of equity $6.2m
    many thanks

    May 18, 2024 at 8:47 am #705595
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3436
    • ☆☆☆☆☆

    Proceeds – normally DR Cash CR OCE but, in this case, DR Other income CR OCE
    Change in NCI DR OCE CR NCI

    Don’t forget that in the exam you must use sentences and not journals for explanations.

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