ACCA SBR · Guided practice (Show me how)
Chapter 5: Changes in group structure
Loss of control and a part-disposal
Chapter 5, Example 4. Socks owned 90% of Mogs before it decided to sell a 50% stake of its investment on 31 December 2015 for $120 million. The non-controlling interest at that date was $53 million and the fair value of the remaining 40% is $96 million. The goodwill on acquisition of the original 90% holding was $38 million and the net assets at the date of disposal were $201 million.
Chapter 5, Example 6 - Group SPL.
| $m | Maryland | Tansey |
|---|---|---|
| Revenue | 2,468 | 1,664 |
| Cost of sales | (1,808) | (1,287) |
| Gross profit | 660 | 377 |
| Other expenses | (285) | (156) |
| Profit before interest and tax | 375 | 221 |
| Finance costs | (83) | (39) |
| Profit before tax | 292 | 182 |
| Taxation | (53) | (36) |
| Profit for the year | 239 | 146 |
Maryland acquired 75% of the equity share capital of Tansey on 1 January 2012. On 1 April 2015, Maryland disposed of a 10% holding in Tansey. Profits accrue evenly over the year.
All figures are in $m.
Socks: loss of control
Calculate the group profit on disposal that will appear in the group financial statements of the Socks group for the year ended 31 December 2015.
Maryland: NCI in profit
Calculate the non-controlling interest in the Maryland Group consolidated statement of profit or loss for the year ended 31 December 2015.
Opening this exercise…