Disposal of subsidiary in parent's books and in consolidated book

Hi, I'll answer your first three point together as they are all related. You're correct to move the gain from OCE to RE, and essentially you would then not need to do anything else to the RE. You need to be careful though as you may, and I'm not sure if you've done this, include the post-acquisition profits of the sub and the impairment, which you should not do. So if you've transferred the $10 million to RE and also included the post-acquisition figure and impairment then your SFP wouldn't balance. Why? If we think about double entry, not as a formula as you state above, then we are doing the following in the answer: DR OCE $10 million DR GRE $0.8 million (group loss on disposal) CR GRE $10.8 million (post-acquisition of 12.8 and impairment of 2.0) and hopefully you see that the last two entries net off to a CR of $10 million, so by just processing the simple entry you mention in your first question, we eliminate the need to think about the group profit on disposal, the post acquisition earnings and the impairment. I doubt many would have got this 100% correct in the exam, so don't let it cause you too may troubles. It seems to me like you've got a very good understanding of the fundamentals of group accounts. If the investment was held at FV then this would just change the profit/loss on disposal and the group profit/loss on disposal but the two changes would mean that it still all cancels out on consolidation. Hope this helps in some way, it's taken me a while to think about it and explain! Thanks