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Why do we need to work out the gain in parent in part 5?
I am not seeing us using it anywhere in the question.
It’s there to show you how to work it out in case the examiner should ever ask the question “What figure will the parent show in its own financial statements for the gain on the disposal of the subsidiary?”
In addition, does it not feature in the question Diana and Liga? The question with a full disposal?
Sorry to barge in, but would I be correct in saying that the only reason that a working for the gain in the parent was needed in the Diana and Liga example was because tax was involved? I.e. it was necessary to know what tax to apply to the group loss, and the only way to do this was to calculate the parent’s gain first?
Sorry, ignore my last post. I just noticed that you used the parent’s gain in the RE earning b/f calculation!
Ok! But you are correct with reference to the tax aspect, thank you