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Can you please explain how:
A dividend received from a subsidiary,
A holding company’s investment in subsidiary,
And it’s disposal
Should be treated in the holding company’s Individual statement of total comprehensive income,
How these lead on to,
The reduction of the cost of investment on disposal,
Relate to the fact that the equity accounting/method is not used in the individual financial statements.
I’m not sure which exam question you are referring to. Please give me a reference in one of the current revision kits or our notes and I will be pleased to come back to you.
Hello,
The questions were asked in the
June 2019 SBR exam, Q1ai. , as outlined in the examiner’s report. The question is not published by ACCA.I am unsure as how to deal with these in the parents individual statement of profit or loss and total comprehensive income .
Would appreciate, the general treatment of the above questions.
Thank you.
I still am not sure what you are asking as these are questions which you would’ve dealt with in the first accounting paper when you first met group accounts
Dividends from subsidiaries would be investment income
Investment in subsidiaries are held at cost or fair value
On disposal of the investment profit would be dealt with in the same way as the disposal of any other non-current asset
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