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June'14 question 1 - elimination of gains in parent

AAnton11y ago
Hello Mike! I would like to check with you if my understanding is correct on consolidation adjustments in June'14 in regard to: -elimination of revaluation of investment in Nathan ($5 mils). Is it eliminated because we report sub profits by consolidating them - so if we leave $5mils in parent's profits it will be double count? -elimination of gain on sale of 8% in Nathan ($5.3mils). No clear at all. I know we do not report profits in cons P&L when we move from 60% to 52%, but how this rule is applicable to parent's P&L? I am struggling to understand a printed answers.
AAnton11y ago#1
Hello Mike. I hope you will find time to confirm/correct statements I have made above.
MikeLittleMikeLittleTutor11y ago#2
The $5 needs to be eliminated - it's internally generated recovery in the goodwill figure and should not, therefore, be recognised The $5.3 is not recognised because control is not lost - any gain is taken into account within the changes in parent's equity - ie within the transfer between owners Ok? I have no idea how or why I missed your earlier post and for that I apologise
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