Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › group disposal
- This topic has 3 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
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- December 1, 2016 at 2:31 pm #352869
Hello sir,
the coming formula illustrates the disposal result as gain or loss at the parent individual records, but it did not consider the goodwill, whilst you said before that the goodwill should be removed, as there is no longer subsidiary (at the consolidated statements)
so,where the goodwill to be deducted?
” the parent company would also reflect a gain or loss on disposal in its individual financial statements”. The calculation of this would be:
Sale proceeds
XLess: Carrying amount of investment at date of disposal
(X)Gain/loss on disposal
XDecember 1, 2016 at 3:32 pm #352897The goodwill that arose on the acquisition of the subsidiary appears ONLY in the consolidated financial statements
The gain / loss in the parent is simply sale proceeds less cost of acquisition
OK?
December 1, 2016 at 4:00 pm #352922That means, that the investment account includes the goodwill amount ?
December 1, 2016 at 7:12 pm #352954No, the investment account represents the amount paid for the acquisition of the shares in the subsidiary
If you’re going to look on it as the acquisition of individual assets, you may as well say that it includes the receivables and INCA too and how would you describe the payables that existed in the subsidiary as at the date of acquisition?
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