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Changes in group structure

Aaccastudent6y ago
When a subsidiary is disposed such that control is lost, a gain is already recognised in parent's separate SOPL. But a separate gain is also recognised in consolidated SOPL. Do we eliminate the gain in separate SOPL of parent?
Aaccastudent6y ago#1
Also.. When shareholding in a subsidiary is disposed such that control is retained, what do we do to the gain recorded in separate SOPL of parent? Do we eliminate it? Thanks for your time.
stephenwidbergstephenwidbergTutor6y ago#2
I think it would be a regular gain in the parent's own P&L (proceeds minus carrying value of investment). This would be eliminated on consolidation - I think the calculation would be horrible and I'm extremely relieved that they wouldn't ask for it!
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