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合并报表的高手们请帮忙: Consolidated Statement under ASPE Question: When subsidiary issue shares to outside interests, the ownership of parent in subsidiary reduces. Where to present the gain/loss resulted?

calvinsea(Kelvin)

The situation is that the Parent realized a gain when subsidiary issued new shares to third parties.

ASPE Section 1601.27 refers the situation to Section 1602.05 -.06, which only says it is equity transaction, and should be adjusted directly in equity. I understand that this explains the debit side, which goes to increase parent's investment account. Then in the consolidation process, parent's investment account is eliminated against subsidiary's share capital. The credit side goes to Gain. My question is, where the gain is presented, in income statement??

In old Canadian GAAP Section 1600.46, the gain is accounted for an income item. I am thinking because it is an equity transaction, it should go to "Other Comprehensive Income" (OCI) statement. However, ASPE does not include the concept of OCI any more.

Thanks,

(#67881@41)
Last Updated: 2012-9-20

Replies, comments and Discussions:

合并报表的高手们请帮忙: Consolidated Statement under ASPE Question: When subsidiary issue shares to outside interests, the ownership of parent in subsidiary reduces. Where to present the gain/loss resulted? -calvinsea(Kelvin); 2012-9-20 {838} (#67881@41)
The situation is that the Parent realized a gain when subsidiary issued new shares to third parties.

ASPE Section 1601.27 refers the situation to Section 1602.05 -.06, which only says it is equity transaction, and should be adjusted directly in equity. I understand that this explains the debit side, which goes to increase parent's investment account. Then in the consolidation process, parent's investment account is eliminated against subsidiary's share capital. The credit side goes to Gain. My question is, where the gain is presented, in income statement??

In old Canadian GAAP Section 1600.46, the gain is accounted for an income item. I am thinking because it is an equity transaction, it should go to "Other Comprehensive Income" (OCI) statement. However, ASPE does not include the concept of OCI any more.

Thanks,

Just read the current CGA FA4 course notes: http://www.cgamedia.org/fa40910/module6/fa4_mod6_handout1.pdf Part 2 No. 2: "the net gain would be CR to Contributed surplus ...". "Contributed surplus" makes more sense to me. -calvinsea(Kelvin); 2012-9-20 {262} (#67882@41)
Just read the current CGA FA4 course notes:
http://www.cgamedia.org/fa40910/module6/fa4_mod6_handout1.pdf

Part 2 No. 2 -- "the net gain would be CR to Contributed surplus ...". "Contributed surplus" makes more sense to me than a "gain" in net income.

@Las Vegas

合并报表的高手们请帮忙: Consolidated Statement under ASPE Question: When subsidiary issue shares to outside interests, the ownership of parent in subsidiary reduces. Where to present the gain/loss resulted?

Replies, comments and Discussions:

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