• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

Group Disposal and discontinued operation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group Disposal and discontinued operation

  • This topic has 1 reply, 2 voices, and was last updated 11 months ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 23, 2021 at 3:26 pm #632631
    msuvarna
    • Topics: 9
    • Replies: 3
    • ☆

    Hello Sir

    I came across a question in the SBR Kaplan Book where an entity disposes a subsidiary and then states it as a discontinued operation. The question asks us to prepare a consolidated profit or loss statement.

    The disposal happened in the mid-year. However, all the items in the statement weren’t time apportioned and the discontinued operation was calculated as the profit for the period time apportioned added with the group profit on disposal shown under the operating profit

    Can you clarify this

    August 24, 2021 at 3:28 pm #632767
    Stephen Widberg
    Moderator
    • Topics: 10
    • Replies: 2548
    • ☆☆☆☆☆

    With a discontinuance you show the results separately at the bottom of the P&L (as you know).

    If the sub was sold mid-year you would only show 6 months of profit. You definitely can’t show profits after you have actually sold it………….that would be stealing!

    If the sub is held for sale at the year end you would show 12 months of profit.

    Does that solve it?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on FA Chapter 23 Questions Group Accounts The Consolidated Statement of Financial Position (2)
  • John Moffat on Double Entry Bookkeeping (part b) – ACCA Financial Accounting (FA) lectures
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy