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Hi!
If part way through the year you sell part of your ownership of a subsidiary so that it becomes an associate do you only account for that under the investment in associate part of the SOFP? Ignoring that it was a subsidiary for some of that year, and therefore not consolidating any part of their assets/ liabilities and not recognising any of the NCI relating to this associate?
I’m trying to prepare a consolidated SOFP that has one sub and then one sub that has turned into an associate and it has just thrown me a bit with how to deal with this in regards to the workings.Thanks!
If part way through the year you sell part of your ownership of a subsidiary so that it becomes an associate do you only account for that under the investment in associate part of the SOFP?
Yes. even if it was a subsidiary for 364 days but sold out and remaining share is less than 50%, it will be only shown as an investment in your Consolidated statement of Financial position.
You only account for assets and liabilities that exist at balance sheet date, the subsidiary was sold during the year and on the balance sheet date it is only an associate.
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