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How to account for tag in consolidated financial statements

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Reference no: EM132557160

Ash, a holding company, decided to sell its 100% owned subsidiary Tag prior to the year ended 31 Dec x5 and the sale is to take place after the financial statements are signed. The contract to sell was being prepared and it was expected that the sale will be finalized in Mar x6. The details of Tag's financial position, including its allocated goodwill are as follows (amount in Rm'mil):

Goodwill 50

Property, plant and equipment at cost 240

Property, plant and equipment at valuation 320

Inventories 100

Trade receivables 60

Trade payables (50)

Total 720

The fair value of Tag was RM600 mil, and the estimated selling cost is RM10 mil.

Required:

Question 1: Advise Ash as to how to account for Tag in the consolidated financial statements for the year ended 31 Dec x5.

Reference no: EM132557160

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