Ch21 - Disposals, Discontinued Operations Flashcards
1
Q
Disposals
A
Often treat as discounted operations
2
Q
Discontinued Operations
A
Profit from Continuing operations:
Usual Proforma: X
Discontinued Operations:
Profit for the period from discontinued operations: X
Total profit for the period
3
Q
Disposal of Subsidiary Proforma
A
Cash received on disposal MINUS
Sum of:
+ Goodwill at disposal
+ Net assets at disposal
- NCI at disposal
Total
Add Profit of disposed subsidiary for the year until date of disposal
Total from discontinued operations
4
Q
If NCI not given at reporting/disposal
A
Calculate using W4 Proforma
5
Q
NCI Working for the SoPL for a disposal
A
Take NCI% of the disposed subsidiary profit until disposal
6
Q
NCI for Disposal
A
If using net assets method, can just multiply NCI% by net assets at reporting/disposal date
7
Q
A
