A parent company may dispose all or part of its subsidiarys shares during a financial year. Give
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Question:
A parent company may dispose all or part of its subsidiary’s shares during a financial year.
Give a detailed discussion on the appropriate accounting treatment for the disposal of subsidiary’s shares.
In particular, you should analyse this one scenarios:
Tthe parent company remains control over the subsidiary after the disposal
Provide examples to show (with journal entries and calculations) how the disposal should be presented in the parent’s separate financial statements and in the group’s consolidated financial statements. Ignore tax effects.
Make up an example is alright.
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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