• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Adjustment of Disposal in Ratio

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Adjustment of Disposal in Ratio

  • This topic has 0 replies, 1 voice, and was last updated 4 years ago by opentution4190.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • December 28, 2020 at 8:46 pm #601084
    opentution4190
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Hello,
    My question is whether following profit and loss statement is including result of discontinued operation of Deadwood, as question mentioned it is consolidated……….if yes

    1. Then while calculating ROCE Deadwoods, net asset removed from both the year buy why PBIT is not reduced which belongs to Deadwoods.

    2. Where are the adjustment of that one off item loss on disposal of Deadwoods.

    224 Greenwood Co 36 mins
    Greenwood Co is a public listed company. On 31 March 20X7 Greenwood Co sold its 80%-owned subsidiary –Deadwood Co – for $6 million. The directors have been advised that the disposal qualifies as a discontinued operation and it has been accounted for accordingly. The disposal proceeds were not collected until after the year end.

    Greenwood Co did not own any other subsidiaries.
    Extracts from Greenwood Co’s financial statements are set out below.
    CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE YR ENDED 31 MARCH
    20X7 20X6
    $’000 $’000
    Revenue 27,500 21,200
    Cost of sales (19,500) (15,000)
    Gross profit 8,000 6,200
    Operating expenses 2,900) (2,450)
    5,100 3,750
    Finance costs (600) (250)
    Profit before taxation 4,500 3,500
    Income tax expense (1,000) (800)
    Profit for the year from continuing operations 3,500 2,700
    Profit/(loss) from discontinued operations (1,500) 320
    Profit for the year 2,000 3,020
    Profit attributable to:
    Owners of Greenwood 2,300 2,956
    Non-controlling interest (300) 64
    2,000 3,020

  • Author
    Posts
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in