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Changes in group structure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Changes in group structure

Viewing 3 posts - 1 through 3 (of 3 total)
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  • November 14, 2019 at 9:59 am #552592
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    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?

    November 14, 2019 at 12:05 pm #552609
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    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.

    November 15, 2019 at 3:29 pm #552722
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3355
    • ☆☆☆☆☆

    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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