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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › 229 Perkins Co Mar Jun 2018
Although Swanson Co was correctly accounted for in the group financial statements for the year ended 31 December 20X7, a gain on disposal of Swanson Co of $9·44m is currently included in operating expenses. This reflects the gain which should have been shown in Perkins Co’s individual financial statements.
The answer was
Operating expenses (3,300 – 1,673 (S x 8/12) + 9,440 profit on disposal)
Why gain on disposal is shown as operating expenses?
Thank you
Hi,
This is the gain from the sale of the investment in the subsidiary. It will have been calculated as proceeds less cost.
Thanks