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Change in a group structure

2.3 Presentation of disposals in consolidated financial statements

There are two ways of presenting the results of the disposed subsidiary:

 Time apportion its results line-by-line, and present the profit/loss on disposal
as an exceptional item.

 Present a single figure – profit from discontinued operations. This is
comprised of:

– the subsidiary’s profit pro-rated up to disposal

– the profit or loss on disposal.

Illustrations and further practice

Now try TYU question 4 from Chapter 21.

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