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Gain/Loss of disposal of subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Gain/Loss of disposal of subsidiary

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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  • Author
    Posts
  • March 2, 2021 at 9:43 am #612570
    buondaiqua
    Member
    • Topics: 22
    • Replies: 18
    • ☆

    Hi,
    I have a question concerning the Mar/June 2019 exam question relating to Pirlo Co.
    In the answer for the comment on performance, it said that $14m of loss on disposal of Samba Co should be included in the consolidated SOPL and reduce the operating profit of the group.
    My question is: Does it make sense when we include the gain/loss on disposal of subsidiary in operating profit since I think it just an one-off event and it’s not the ordinary activity course of the group?
    Thank you

    March 2, 2021 at 9:00 pm #612838
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    In the analysis, it would be removed when comparing to the prior year to get a better like-for-like comparison.

    There is a debrief of this question in the revision section of the FR resources.

    Thanks

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