Disclosure of gain/loss on disposal

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gingerjaikcs
Posts: 2
Joined: 21 Jun 2022, 17:12

Disclosure of gain/loss on disposal

Post by gingerjaikcs »

Should the gain/loss on disposal of a subsidiary and the reversal for impairment of investment in subsidiary which carry forward from previous year separately disclose in the note of other gain and loss financial statement?

Example 1)

Other gain and loss
FY2021 FY2020
Gain on disposal of a subsidiary 100 Nil
Provision for impairment loss of subsidiary Nil (200)

Example 2)

Other gain and loss
FY2021 FY2020
Loss on disposal of a subsidiary (100) Nil
Reversal/ (provision) for impairment loss of subsidiary 200 (200)

Which disclosure/presentation is correct? Thanks for help!
Last edited by gingerjaikcs on 21 Jun 2022, 18:08, edited 1 time in total.
Leo
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Joined: 05 Apr 2020, 22:31

Re: Disclosure of gain/loss on disposal

Post by Leo »

I guess you are talking about IAS27 Separate financial statements not consolidation right ?

I would show a gain
gingerjaikcs
Posts: 2
Joined: 21 Jun 2022, 17:12

Re: Disclosure of gain/loss on disposal

Post by gingerjaikcs »

Leo wrote: 21 Jun 2022, 17:57 I guess you are talking about IAS27 Separate financial statements not consolidation right ?

I would show a gain
I have updated the question. Thank you so much Leo!
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Marek Muc
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Re: Disclosure of gain/loss on disposal

Post by Marek Muc »

You need to reverse the impairment loss up to the recoverable amount. So in your scenario you'll have a partial reversal of impairment and the result on disposal will be nil
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