Step disposals – Control to no control – ACCA (SBR) lectures

kaori says
June 2, 2020 at 9:05 pm
Hi,
Thank you always for the lectures. Would you mind writing out the journal entries in relation to this disposal? They don’t add up….
Dr. Cash $120m
Dr. NCI (Equity) $53m
Cr. Goodwill $38m
Cr. Profit on disposal $30m
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- Zura says
  June 21, 2020 at 2:47 pm
  Hello,
  I don’t know how write entire entries, but in my opinion NCI should be in Credit. Because we sold Mogs and our NCI is increase instead decrease.
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P2-D2 says
October 3, 2018 at 6:03 pm
Hi,
If we are no longer consolidating then we are removing the net assets and goodwill, i.e. the entire subsidiary, from the group accounts. To calculate the group profit or loss on disposal we need to look at what the entire subsidiary is worth, so we don’t just look at the proceeds as this is what we get for selling our shareholding, we also need to look at the value of what we do no own (the NCI) and add this to the proceeds to get the value of the entire subsidiary.
Thanks
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lachu910 says
October 3, 2018 at 8:36 am
Hi Sir, I dint get how NCI is added back to proceeds while disposing subsidiary
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