Hello, I need your assistance in the following:
A step disposal where the control is retained, so in substance there is no sale and it is a group shareholders' transaction.
Assuming that we have calculated the increase in NCI and we have the following journals:
Dr Cash (received from the disposal) for example 100
Cr NCI (is increased by for example) 93
Cr RE/OCE (?) 7
When preparing the Consolidated SFP do we account for the 93 in Cash, do we increase it (apart from adding Parent's + Sub's balances) by the amount of the transaction?
I have been working out an example and I got a bit confused.
I thought that we should account for that, but then the answer had not account for that, and I thought it might be because since it is an intragroup transaction, there is in substance no sale.
Could you please help me on that?
Many thanks in advance :)
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Step Disposals - Control is retained
6y ago#1I suspect that, it in the question, they had already recorded the cash, but posted the other side of the double entry to the wrong account.
I think the 7 would end up in RE not OCE.
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