Hello,
If A Subsidiary has wound up during the year, when calculating gain/loss [Proceed - Carrying amount] on deemed disposal of the Subsidiary at the Parent Level, Can we say that proceeds = net assets of the Subsidiary?
In the book of the Parent
Investment in Subsidiary $100,000
In the book of the Subsidiary
Asset $150,000
Liabilities $100,000
The remaining amount of $50,000 will be distributed to the Parent.
Loss on deemed disposal of Subsidiary recognised at Parent Level
Proceeds $50,000
Carrying amount of Sub $100,000
Loss on deemed disposal ($50,000)
Is it correct?
Winding up of Subsidary
Re: Winding up of Subsidary
You need to check what assets will be distributed to the parent and what liabilities of the subsidiary assumed. It may be different than the net assets value as reported in the separate financial statements of the subsidiary.