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Consolidation- disposal of subsidiary

12 November 2010 12,665 views 3 Comments

Dear all,
I would like to have your opinion on the below.
A Company usually prepares consolidated accounts for a 100% owned subsidiary and the year end is March.
For the year ended March 2010, the shares were transfered to another company on the 15th March 2010.
What i want to know is whether do i have to prepare consolidated accounts for this year. How should it be presented?I know the PL should be consolidated at date of disposal but what about the balance sheet? Can i not prorate the PL as i have only 15 …

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3 Comments »

  • ifrslist
    ifrslist said:

    Consolidation- disposal of subsidiary – http://www.ifrslist.com/2010/11/12/conso...
    via Twitoaster

  • riyer0018 said:

    You will have do full consolidation of only till March 15, 2010. The income statement of year 2009-10 will contain the

    (a) Result of the parent company for the year 2009-10 (Obviously)
    (b) Results of the subsidiary till March 15, 2010
    (c) Loss/Gain on disposal of Investment
    (d) Release of other comprehensive income of Subsidiary to the income
    statement
    (e) Recognition of unrealised losses and profits in respect assets
    lying in the books of the parent.

    Plus, you will to mention in the notes to accounts that 2009-10 are not fully comparable to 2008-09 since the subsidiary was sold in the year 2009-10.

    In the consol accounts, you will prepare Group 2010 and Group 2009.

  • nirmala (author) said:

    Thank Riyer.

    What about the balance sheet? Do i Have to show consolidated figures 2009? Or i simply put the comparatives of the company only.

    Regards

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