SBRChanges in group structure

Based on my understanding, the full disposal of subsidiary during the year, the parent co still have to prepare the console FS as the control over the subs from the beginning of the year till the date of disposal.

Therefore the gain on diposal in the group book is required,

Hi kisekdance,

But I thought that was only true of the P&L, as it covers a period, rather than the SOFP, which is a snapshot at the year end. There is no NCI. I'm trying to remember an example question: when the retained earnings were calculated it took the year end and added the profit calculated for the parent's statement only. I didn't see anywhere where the group gain was considered?

Can anyone shed some light on this?

You need to calculate the P&L for that year for the retained earnings figure and that's it!!! There will be no NCI or no consolidation on the SOFP

But why is there a working for a gain in the group then?

Hope u still remember your gain on disposal of share comprising de-recognition of NCI and Fair value of net asset & Goodwill , and u will prepare a group SOFP with no NCI and Consolidation for comparison purpose (show ur shareholder/FS user how NCI and sub part to be derecognised and the end result of disposal)

In the SOFP there will be no NCI, and the retained earnings figure will only have the gain in the parent added from [W3A].

Is it the case that you only need to calculate the gain or loss in the group, [W3B], if you are required to produce the SOCI (as you would still consolidate the results for the year up to the point of disposal)?

Yup, I think u got my point dy. your SOFP will have no NCI however u still need to consolidate ur sub performance up to date of disposal, and it's will affect your SOFP.

Therefore the calculation of Gain or loss on disposal in the group is required.