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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:
Less: Carrying amount of investment at date of disposal
Gain/loss on disposal
The 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
That means, that the investment account includes the goodwill amount ?
No, 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?