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Hi Dear Mike
When parent disposal subsidiary , and there is NCI at acquisition measured at FV and there is impairment at disposal date, is NCI a bear by proportion from that impairment when NCI calculate at disposal to deduct from net asset plus g/w at disposal date .
for example : proceeds amount 4100, net assets at acqn 2350 net asset at disposal 3000,g/w at acqn 250 , impairment 60 at disposal date, NCI at acqn at FV 350 ,what gain on disposal is reported in the CSPL?
So why didn’t you tell me that originally?
🙁
This looks to me like:
Proceeds 4,100
Net assets at date of disposal 3,000
Percentage sold 85%
85% x 3,1000 = 2,550
Gain on disposal 550
Goodwill sold (250 – 60) 190
Group gain on disposal 360OK?
I just forgot to mention the percentage initially sorry about that .
I still did not understand how you calculate the group gain , and where is NCI at disposal also why you multiplied 85%*3100 .
The proceeds of sale is the amount that the parent receives from selling its holding in the subsidiary
But the parent only owns 85% of the subsidiary shares so is only entitled to account for the sale of 85% of the subsidiary’s net assets at date of disposal together with the whole of the impaired goodwill
NCI on disposal disappears – they still own their 15% of the subsidiary’s shares and therefore also their interest in the subsidiary’s net assets
OK?
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