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Group disposals

Consolidated financial statements

F7 will only examine full disposal of a subsidiary, i.e. sale of all shares
held by the parent.

3.1 Impact on consolidated financial statements

Statement of profit or loss Statement of financial position

– Subsidiary results consolidated – Subsidiary not consolidated
up to date of disposal
– Profit/loss on disposal included
– Profit/loss on disposal within retained earnings

– Alternative: treat as discontinued

operation (see chapter 5)

3.2 Consolidated financial statements profit or loss

$

Sale proceeds X
Net assets of subsidiary at disposal X

Unimpaired goodwill at disposal X
Non-controlling interest at disposal (X)

——— (X)
———

Profit/(loss) in consolidated SPL X
———

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