Syllabus D. Financial Statements of Groups entities D3. Changes In Group Structures

D3a. Accounting For Group Companies In The Parent 1 / 4

Syllabus D3a)

Discuss and apply accounting for group companies in the separate financial statements of the parent company.

In the parent's own financial statements...

  • Investments in subsidiaries are held at cost or at fair value under IFRS 9

  • Consequently the profit or loss on disposal of a sub is different from the group profit or loss on disposal:

    Fair value of consideration received X
    Less carrying amount of investment disposed of (X)
    Profit/ (loss) X

    This would be in P's Income statement and is ignored in group accounts - the group loss on disposal is shown instead