Australia Accounting treatment on deregistered company

Jun 29, 2021
Reaction score
We deregistered Co.A who has equity shares inveested by Co. B in the financial year just ended and I need to reflect this in the financial statements of the Co.B

The COMPANY Co.A itself has minimal net assets ($260) and equity $2,800 Cr
The Co.B has the investment in its balance sheet at a net value of $2,800 Dr equity

1. Should the company Co.B investment be written off in the financials only? Cr equity Dr CGT loss $2.800. Any tax implication as result of the deregistration of Co. A?
2. If yes to 1. above, how does this get dealt with on Co. B?
3. Should the Co.B net assets amount be written off in the books, or is this irrelevant as all TB entries for the Co.B are written off (therefore balancing to zero) once deregistered?

Apologies if these are stupid questions, and thanks in advance for any help!

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question