Consolidation when Sub is held for sales
Posted: 18 Apr 2023, 07:12
Hi All, just a quick question about elimination.
Lets say The parent is selling the Sub and it's now classified as held for sales for 1000. So Parent
DR asset HFS 1000
CR Investment in Sub 1000
As I understand, we still need to consolidate the sub until parent lost control, so when it's still "held for sales" parent hasn't lost control yet so it's still part of the consol.
Question: IF the sub is NOT held for sales, then from the group level, we simply offset the "investment in Sub" with the Sub's equity (assuming no NCI).
BUT when the "investment in Sub" is already cleared to "held for sales", do we still eliminate the same way from the group level? like below?
DR Sub's Equity 90
CR Asset Held for sales 100
DR Goodwill (assumed there is a goodwill) 10
Regards
Sowrudy
Lets say The parent is selling the Sub and it's now classified as held for sales for 1000. So Parent
DR asset HFS 1000
CR Investment in Sub 1000
As I understand, we still need to consolidate the sub until parent lost control, so when it's still "held for sales" parent hasn't lost control yet so it's still part of the consol.
Question: IF the sub is NOT held for sales, then from the group level, we simply offset the "investment in Sub" with the Sub's equity (assuming no NCI).
BUT when the "investment in Sub" is already cleared to "held for sales", do we still eliminate the same way from the group level? like below?
DR Sub's Equity 90
CR Asset Held for sales 100
DR Goodwill (assumed there is a goodwill) 10
Regards
Sowrudy