- This topic has 1 reply, 2 voices, and was last updated 5 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › ACCA Forums › General ACCA Forums › Disposal of sub-subsidiary
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$.
You 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.
