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Hi Sir,
I have few questions on Question 1(a)(ii) SBR (INT) Specimen exam – applicable from September 2018 and hope you can clear my confusion.In calculating gain or loss of disposal of subsidiary, why does NCI becomes zero when the holding of subsidiary is disposed entirely, but NCI exists in the calculation, when subsidiary is disposed to become associate?
When partial goodwill has been used, does it affect the ‘Net Asset’ in calculation of gain or loss on disposal of subsidiary?
The answer isn’t very clear – I would have DEDUCTED 100% OF NET ASSETS then ADDED BACK NCI (which is 20% of net assets) – you get the same answer – the printed answer has taken a short cut – I wouldn’t do this personally.
I think that probably answers both of your questions, but, if not, come back
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