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Disposal of foreign subsidiaries

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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May 24, 2023 at 6:02 pm #684964
boiledalien
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When we r disposing off subsidiaries, and lets say the oci has a gain of 20 (the recycled gain) but total gain on disposal is 55, when we do journal entry by dr. oci and cr. p&l do we use 55 or 20?
May 25, 2023 at 6:55 am #684978
Stephen Widberg
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1. Calculate gain on disposal in normal way : proceeds – net assets – goodwill + NCI : answer goes in P&L
2. Recycle CUMULATIVE XD : Dr OCI Cr P&L (i.e. add this number to the answer in step 1.
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