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what amount a company state: when it wants to dispose it off all, then gain on disposals in separate financial statements is recognized as difference between cost and disposal proceeds. What about the movements in its fair value and share price? Amounts of dividends it has received during its period of holding. If that investment has been revalued already and profits have been realized already then what’s the point in again using cost to calculate gain on disposal.s its investment in other companies? Either its cost i.e. historical cost or fair value?
In the parent’s own accounts, the investment in the subsidiary will be shown at original cost.
In the consolidation ….. ah, that’s different. Taken into consolidated retained earnings will be the parent’s share of the subsidiary’s post acquisition retained earnings and the entirity of the subsidiary’s net assets after which we will have allocated to the nci their share.
But you’re asking about the profit in the parent and, as stated, the carrying value will still be original cost
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