sir i wanted ot understand why the examiner has used this method to find gain on disposal: 10+ 3.5-12=1.5, not that i don't understand this method, i completely do get this method. but my bone of contention is that profit/loss figure we get hence, is used for inclusion in CONSOLIDATED SPL.
and so instead of that we should, have used disposal proceeds less cost or carrying amount of investment(i.e. $10-12x45/60=$1m gain) , the precise method we use to calculate gain/loss for inclusion in INDIVIDUAL OR SEPERATE FINANCIAL STATEMENTS
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sitika co. M/J 2021 seperate financial staments
4y ago#1Please refer to the examiner's answer where the logic is explained.................because the remaining interest must be measured at FV.
Never seen that point examined - and I suspect it will be another 35 years before is is examined again.
In SBR they seek to see how students react to a situation that they have never seen before- very few candidates would have thought of that - it's certainly not a pass or fail point.
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