Hi guys,
My parent company Mother sold 100% of Child A on 30 September 2020 (100% Full consolidation before). The annual closing is on 31/12. And the net equity of Child A on 30 September is 100 M€.
Child A had paid dividends to Mother previous to the disposal date, on 30/06, for 20M€. The net equity of Child A before dividend distribution was 120M€.
When I have to calculate the gain or loss on disposal of Child A, do I have to take 120M€ or 100M€ to compare with the consideration paid?
Thank you for your help.
Calculation of gain & loss on disposal of subsidiary
Re: Calculation of gain & loss on disposal of subsidiary
I got the answer, I have to take 100M€, after the dividend distribution.
Re: Calculation of gain & loss on disposal of subsidiary
writing down one's thoughts helps a lot, doesn't it?