Hi, please can you help. When we calculate a gain or loss on disposal of a subsidiary for a group disposals, why do we deduct goodwill in addition to deducting net assets at date of disposal? Isn’t the goodwill included in the net assets at date of disposal? I’m thinking in terms of example 4 on page 117. Sorry, if I’m missing something obvious.
We are removing all the assets of the subsidiary on its disposal and the net assets figure does not include the goodwill asset, hence why we deduct it on top of deducting the net assets figure.