In calculating the profit or loss on the sale of shares in a controlled entity that is to be included in the group accounts,consideration should be given to the share of post-acquisition profits and movements in reserves that have been recognised.

Question

Quizplus · Accepted Answer

The calculation of profit or loss on the sale of shares in a controlled entity for inclusion in the group accounts should take into account the share of post-acquisition profits and changes in reserves that have been identified. This is in accordance with the accounting standards and principles for the preparation of group financial statements.

In Calculating the Profit or Loss on the Sale of Shares