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I saw many answers written by you on this question, however I’m still confused.
For Gain on investment in Nathan, the 5m is correctly recorded in Marchant’s account, however, it will be eliminated on consolidation. Am I correct?
For gain on sale of holding in Nathan’s, as there is no loss of control, nothing should be recognised in P&L, as there is merely a movement in equity between NCI and equity. Yes?
However, when reversing the gain part, how do I know Nathan is calculating 8%/60% of 95m instead of 120m?
Assuming, they will use cost of investment instead of net assets to calucate the gain ?Note 8 Loss an effective cash flow hedge –
If the cash flow hedge is ineffective, no adjustment is required, right? As ineffective cash flow hedge will recorded in P&L.Thanks.
Correct as the gain is replaced by the change in ownership in the group accounts.
Correct, there is nothing to recognise in the SPL as it is just a movement in the equity whihc goes through the statement of changes in equity.
Not sure I follow the % bit sorry. Can you explain further please?
If the CF hedge is ineffective then no hedging is allowed and the normal non-hedge accounting rules apply.
Thanks
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