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Gain/Loss of disposal of subsidiary

This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.

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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: 6440
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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