Dear All,
I would like to know the accounting treatment / entries on disposal of Equity share at loss which have been routed through OCI fair value as per latest signed balance sheet.
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Accounting Treatement on Disposal of Equity share - IndAS
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To record the disposal of shares in a journal entry, you need to
- Debit Cash or Bank account for the amount received from the sale of shares.
- Credit Investment account for the carrying amount of shares sold.
- Credit Other income account for the gain or loss on disposal of shares.
- If the entry has already been passed, it needs to be reversed before passing the entry for disposal in consolidation.
- The gain or loss on disposal is recognized with reference to the last revaluation date
If subsidiary has 100 shares, how many shares does the parent hold? And how mamy shares did it sell?
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