A gain recorded by a subsidiary on the sale of a non-current asset to another entity within the group will result in a debit adjustment to the NCI share of current year profit.

Question

Quizplus · Accepted Answer

A gain on the sale of a non-current asset by a subsidiary to another entity within the group is eliminated in the consolidation process. The amount of the gain is added back to the subsidiary's income and deducted from the buyer's cost of the asset. Therefore, there is no impact on the NCI share of current year profit.

A Gain Recorded by a Subsidiary on the Sale of a Non-Current