Dear Tutor,
The question 58c-Kate quoted that at 1.4.X5 Cate had direct holding of shares giving of 70% of voting right in Date. In May 20X6 Date issue new shares but to new investors. After the increase in capital Cate retain an interest of 35% of voting right in Date.
My question is The interest in Cate reduce due to increase in Date capital by issue share to other investor. Why this is called a sub disposal? Sorry, I confuse with the defintion.
This is what I read from Exam Technique for P2.
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P2 Question 58 c (Rev Kit) Cate: Sub disposal
its a sub disposal as with only 35% of the shares its now an associate and will no longer consolidate.
Cate had control of Date so if they issue shares its cate that made that decision.
sorry Mike, thought i was answering in P2 forum
11y ago#3Ok Latoyah
huongnt, it's called a DEEMED disposal and is treated by looking at the value of the 70% pre-issue holding and comparing with the value of the 35% post-issue holding
Dear Mike,
I got the answer already. I now know "deemed disposal".
Thank you.
11y ago#5You're welcome
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