Disposal of a subsidary cap2

Mat85

anyone know where theres a good example of a full disposal of a subsidary i know its late in the day but im tryin to cover all i can? ive got that 190 pg set of examples but as far as i can see there isnt a disposal anyone any ideas?

Hanley

Have a look at the mozart Q on sample paper 2.

EDIT: Deals with disposal of subsid. during the year, basically (afaik) the main changes are you apportion the profit etc to pre and post disposal, calc minority interest on that basis, and don't put in any minority interest to the balance sheet. (tho the former doesn't happen in that Q because the disposal takes place on the final day of the year)

Gain/loss per the group account = disposal proceeds - total goodwill - group share of net assets

Keany

You can look at Question SUNGAP Page 59 in the Revision booklet.

Prezatch

2008 Autumn exam - Q.4 Buena Ltd has a part disposal of a subsidiary.

But what do ye know, the solution is wrong! (Can you feel the ICAI love). My lecturer Barry Smith confirmed this and sent me a revised solution relating to two of the workings:

Hanley

When you're calc'n the profit for the parent, does it actually go anywhere in the consolidated accounts?? Or is it just the profit for the group??

Mat85

so disposal of a subsidary is treated the same as diposal of a minority holding? that mozart one is a disposal of a 40% associate? is this right?

Hanley

Mat85 wrote: »

so disposal of a subsidary is treated the same as diposal of a minority holding? that mozart one is a disposal of a 40% associate? is this right?

Dakota's the subsid. being disposed of and that's a 75%'er afaik... You wouldn't have minority interest concerns if you were disposing of an associate holding right?

Mat85

ok thanks im confusing myself altogether il have a look at it now