Disposal of subsidiary

Question 1

Disposal of subsidiary - CP&L

What are the corresponding workings?

Answer 1

W4 profit TO disposal
W5 Profit on disposal

Question 2

Disposal of subsidiary - CP&L

What are the steps when disposing of a sub?

Answer 2

1: Profit to disposal
2: Profit/loss on disposal
3: Include the above as a discontinued operation under one line in P&L
4: Time apportion NCI to date of disposal

Question 3

Disposal of subsidiary - CP&L

W4?

Answer 3

Profit to disposal

Question 4

Disposal of subsidiary - CP&L

W5?

Answer 4

Profit on disposal:
Proceeds
NCI at disposal (add)
NA’s at disposal (minus)
Goodwill (minus)

Question 5

Disposal of Subsidiary - SOCIE

What are the steps for the SOCIE?

Answer 5

1: Include NCI share of profits to date of disposal
2: Deduct NCI at date of disposal from NCI column

Question 6

Disposal of Subsidiary

How to calculate goodwill at disposal?

Answer 6

Initial consideration (add)
NCI @ Acq (%) (add)
NA’s at Acq (less)
Impairment to date (less)