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Consolidation financial statement – Group Gain on disposal of subsidiary

This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.

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June 5, 2021 at 1:16 pm #623282
Fannee
Member
- Topics: 6
- Replies: 1
Hi,
In the group accounts we use the following calculation based upon the substance:
Proceeds X 200000
Add: FV of investment still held X 10000
Add: NCI X 20000
Less: Net assets (X) (30000)
Less: Goodwill (X) (1500)
Profit/(loss) on disposal X/(X) 198500
May I know what is the journal entry at parent level and group level. The proceeds is at parent level or group level?
Thanks
June 6, 2021 at 1:07 pm #623434
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3408
Parent
Dr Cash Cr Financial asset (CA) Difference probably to P&L (unless classified as FVOCI)
Group
Dr Cash Dr New Financial asset Dr NCI Cr NA Cr Goodwill Difference to P&L
August 10, 2021 at 12:04 pm #631020
Fannee
Member
- Topics: 6
- Replies: 1
Dr both Parent and Group cash. Will there be double counting cash?
Thank you
August 11, 2021 at 8:40 am #631152
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3408
Remember that the group accounts are ‘let’s pretend’ accounts – we pretend that the group is a single entity. So there is no double counting.
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