Group Accounts - Disposal

• Disposal


  The accounting treatment for disposing of a subsidiary
• Accounting Treatment for Disposal

  1. The disposal will be recorded

  2. The results of the subsidiary should be time-apportioned and consolidated up to the date of disposal

  3. The non-controlling interest should be based on its share of the subsidiary's results up to the date of disposal

  4. The group profit or loss on disposal should be recognised
• Group Profit or Loss on Disposal

  The profit or loss recognised by the group on disposing of a subsidiary
• In exam questions you should assume that a subsidiary which is fully disposed of is a separately reportable business segment and meets the IFRS 5, Non-current Assets Held for Sale and Discontinued Operations definition of a discontinued activity
• The disposal should be disclosed in accordance with IFRS 5