Chapter 12 - Group accounts - changes in group structure

Question 1

Proforma for P/L on disposal for when substitute becomes an associate - group accounts

Answer 1

FV proceeds
FV remaining investment
Less: Net assets @ disposal @ old % share
Less: Goodwill @ acquisition

Question 2

Proforma for P/L on disposal for when substitute becomes an associate - separate accounts

Answer 2

FV proceeds

Less: FV of investment disposal = original cost x NCI change

Question 3

Proforma for goodwill when trade investment becomes a subsidiary

Answer 3

Cost
NCI
FV trade investment
Less: Net assets @ acquisition of subsidiary 
Less: Impairment