01-29-2010, 11:31 PM
Yes. Further, selling the segment to a newly formed subsidiary (to restructure the group) can be seen as bringing about the following changes only
1) On the Balance Sheet The net assets and liabilities of the old segment would in effect become part of the investments of the company
2) On the Income Statement The segment profits will be replaced by dividends and capital gains
Hence recovery being through continued use rather than through disposal - loss of control!!!!
1) On the Balance Sheet The net assets and liabilities of the old segment would in effect become part of the investments of the company
2) On the Income Statement The segment profits will be replaced by dividends and capital gains
Hence recovery being through continued use rather than through disposal - loss of control!!!!
