Profit/Loss on Disposal of Subsidiary

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March 23, 2021 at 4:06 pm #615046
james8500
Participant
- Topics: 68
- Replies: 17
Hi

Can you please tell me whether the profit or loss on the disposal of a subsidiary comes before PBIT on the consolidated P/L? Therefore, is it deducted from PBIT and would it impact ratios such as NPM, ROCE..?.

Thanks
March 27, 2021 at 7:12 am #615289
P2-D2
Keymaster
- Topics: 4
- Replies: 7235
Hi,

The figure would appear as part of the discontinued operations figure and so in a separate line item within the group profit or loss account. It would therefore not impact the ratios that you mention above.

Thanks
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