Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Disposal of sub-subsidiary
- This topic has 0 replies, 1 voice, and was last updated 4 years ago by justmaxis.
- AuthorPosts
- September 1, 2020 at 5:28 pm #583046
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$. - AuthorPosts
- You must be logged in to reply to this topic.