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!
Disclosure of gain/loss on disposal
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Disclosure of gain/loss on disposal
Last edited by gingerjaikcs on 21 Jun 2022, 18:08, edited 1 time in total.
Re: Disclosure of gain/loss on disposal
I guess you are talking about IAS27 Separate financial statements not consolidation right ?
I would show a gain
I would show a gain
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- Posts: 2
- Joined: 21 Jun 2022, 17:12
Re: Disclosure of gain/loss on disposal
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