Hello,
Suppose that a Parent has disposed its Subsidiary on the last day of the financial year,
At Parent Level, we will
DR Bank (Proceed received)
CR Carrying amount of the Subsidiary
CR Gain on disposal
At Group level, I understand that we should recognize a Group gain/(loss). Group gain = Proceeds received - Net assets of Subsidiary on disposal date
I am doing a line by line consolidation.
I have inserted the figures of the Parent in one column and figures of the Subsidiary in another column.
To deconsolidate the Subsidiary, I have
DR Liabilities of the Subsidiary
CR Assets of the Subsidiary
CR Group gain/loss
Can anyone please let me know, which journal entries (in term of DR CR) should be made a Group level to calculate the Group Gain/loss?
