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- September 1, 2020 at 4:18 pm #583038
Group structure: A holds 60% in B, B holds 100% in C.
A bought 60% share in B few years ago, when B already had 100% share in C.31 March 201X B sold 100% share in C for 35 000 $, net assets of C at date of transaction were 10 000$, goodwill related to C in A’s consolidated FS 12 000$. How this transaction will affect SCE in A’s consolidated FS?
My calculations:
Profit: Fair value of consideration received – net assets + NCI – goodwill
35000-10000+4000-12000 = 17 000$
Group share of profit from transaction: (35000-10000) *60%-12000(as goodwill fully related to group)=3000$
NCI share of profit from transaction: 17000-3000 = 14000$Disposal of subsidiary with NCI: Net assets of C at disposal * NCI
10000*((1-60%)*100%)= (4000)
Summary:
Two rows in SCE:
Profit: Column “Retain earnings” – 3000; Column “NCI” – 14000
Disposal of subsidiary with NCI: Column “NCI” – (4000)
Total changes in equity of A after transaction is 13 000$Please help, Am I right in calculations?
V.2 No disposal of NCI and profit from transaction is 13 000$.September 1, 2020 at 4:42 pm #583043You need to post this to an appropriate forum – choose exam (FA, FR or SBR) and whether you want a fellow student to respond or ask the tutor.
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