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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Change in a group structure
P purchased 80% of the shares in S 4 yrs ago for $100,000. On 30 June it sold all of these shares for 250,000. The nest assets of S at the acq’n date were $69,000 and at the DOD were $88,000. 50% of the goodwill arising on acq’n had been written off in an earlier year. The FV of NCI in S @DO A was $15,000. It is grp policy to account for goodwill using the full goodwill method.
Tax is charged at 30%
Calculate the profit or loss arising to the grp on the disposal of the shares.
I did :
Proceeds of disposal. 250
NA @ DOD. 88
% sold. 80% (70.4)
Goodwill sold. ( 23)
Gain in group. 156.6
Tax. (45)
111.6
I’m not getting the answer I’m suppose to….I know I made a simple mistake but I can’t put my finger on it…..could you please help me to clarify this issue thanks.
I realise why I’m confused is because the book is using the format for part disposal in the case of full disposal to calculate the gain/loss in the group.
They are using :
Proceeds
Less: NA @DOD
GOODWILL @ DOD
ADD: NCI @ DOD
In an exam sitting or even for the purpose of review leading up to the exam which one am I suppose to use for full disposal?
