Page 476 - SBR Integrated Workbook STUDENT S18-J19

Chapter 25

Example 2

Disposal

Individual financial statements

The profit on the sale is calculated as follows:

$m
Proceeds 90

Carrying amount of shares sold
(60/70 × $35m) (30)

––––
Profit on disposal 60

––––

Consolidated financial statements
$m $m

Proceeds 90
Fair value of shares retained 12

Less carrying amount of subsidiary:
Goodwill at disposal (see calc.) 5

Net assets at disposal 95
NCI at disposal (see calc.) (28.6)

–––––
(71.4)

–––––
Profit on disposal 30.6

–––––

470