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Hi Again Sir,
Sir i had a question regarding when a subsidiary is acquired for the To be classified As held for sale in the SOCI we will show the subsidiary results in a single line under profir from Discontinued operazions but what about SOFP should i show them the Following Way
Assets held for Sale
Subsidiaries AssetsLiabilities Held for Sale
Subidiaries Held for SaleBecause in the BPP study text it just shows the illustration for the SOCI not the SOFP and tells that Held for sale subisidary Assets and liabilities shown separately from the rest.
And the NCI and GW will be shown as normal am i right please correct me.
Best Regards
No, I don’t think you are right. You are correct with the SOCI, but on SoFP you will show the investment in the AHFS as cost + our share of post acq profit. This will be shown as an asset between TNCA and Current Assets. Goodwill and nci will not feature.
I think that’s correct, I’ve never come across it, and I believe that it’s unlikely in the exam. There MAY be a question on the “grounds for non-consolidation” but it’s not likely to come up as part of the calculations in question 1.
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