Calculation of gain & loss on disposal of subsidiary

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Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Calculation of gain & loss on disposal of subsidiary

Post by Leo »

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.
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Calculation of gain & loss on disposal of subsidiary

Post by Leo »

I got the answer, I have to take 100M€, after the dividend distribution.
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Marek Muc
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Re: Calculation of gain & loss on disposal of subsidiary

Post by Marek Muc »

writing down one's thoughts helps a lot, doesn't it? :lol:
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Calculation of gain & loss on disposal of subsidiary

Post by Leo »

Yea haha
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