Disposal of Subsidiary

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SaadOlath
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Joined: 22 Dec 2019, 10:50

Disposal of Subsidiary

Post by SaadOlath »

When disposing a Subsidiary, should we remove all accumulated profits of that Subsidiary in the consolidated statement of changes in equity.

As the consolidated opening balance of the SOCE includes the accumulated profits of that Subsidiary.
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Marek Muc
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Re: Disposal of Subsidiary

Post by Marek Muc »

no, you remove assets and liabilities only,
you can think of it this way: disposal in current year does not impact reported profits in previous years
JRSB
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Re: Disposal of Subsidiary

Post by JRSB »

maybe there is cumulative fx translation in equity re that sub?
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Marek Muc
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Re: Disposal of Subsidiary

Post by Marek Muc »

good point, this should be recycled to P&L:

https://ifrscommunity.com/knowledge-bas ... -operation
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