Step Disposal – Assoc to Financial Assset

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May 10, 2022 at 2:27 pm #655330
james8500
Participant
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Hi Sir

I am confused with the process of a step disposal from Associate to Financial asset.

Not sure whether the Assoc is revalued first or whether it should be completely disposed of at carrying value, a gain/loss recognised in the account and a Financial asset then recognised.

Could you confirm the process please.

Thanks
May 10, 2022 at 6:28 pm #655351
Stephen Widberg
Keymaster
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Dr Fin asset (FV of shares retained)
Dr Cash
Cr Associate (existing CA)

Balance to P&L

🙂
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