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7301 Points
Posted on 12 March 2022
Yes. One has to derecognise goodwill as per IndAS 110. This is in the case of full loss of control, the cost of investment will be credited. But if you, say I sold 40% equity but still it is a subsidiary, then
in the parents books you have to subtract Cost of investment in subsidiary from the sales proceeds
Sale proceed xxx
Less cost of investment in S xxx*40%
So, the treatment differs when a subsidiary becomes an associate, JV or completely sold.
So if you can confirm me if complete subsidiary was sold, I can give you the
Para 25(a) - Goodwill to be derecognised.
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