Module I· Consolidation & Equity MethodAdvanced
Question
How do you treat the sale of a subsidiary (deconsolidation)?
Answer
Loss of control triggers deconsolidation: remove assets, liabilities, and NCI; recognize proceeds and fair value of retained stake; book gain/loss.
Deep diveShow more details
In sell-side models, watch for stranded costs and TSA income / costs. Reported disposal gain is not operating performance.