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Hi,
I’m trying to get my head around the reason and logic behind the different proformas for the partial and full disposal of subsidiaries.
In your notes, for the W3B calculation (gain in the group), I notice that for a full disposal, you don’t include goodwill as part of the carrying value of the net assets. Why is that? Also, instead of subtracting the NCI from the net assets like you do with a partial disposal, you instead multiply the carrying value of the net assets by the percentage sold. Why don’t you subtract the carrying value of the NCI like you do with a partial disposal? Would it give a different answer?
Thanks for your help.
For a complete disposal, I DO include the goodwill as one of the assets disposed.
In a partial disposal, we calculate the value attributable to us and then get rid of the appropriate proportion including the proportion of goodwill also sold, where nci is on a fair value basis and not proportionate
Hi Mike,
Thanks very much for your reply. I’m still trying to absorb it all, it takes me a long time! I’ll probably be back in a bit!
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