What should be included in the consolidated Statement of Profit or Loss (SPL) at the date of disposal of a subsidiary?

The choice indicating that subsidiary results up to the date of disposal should be included in the consolidated Statement of Profit or Loss (SPL) is correct because it aligns with the principles of consolidating financial statements. When a parent company disposes of a subsidiary, it must recognize the financial performance of that subsidiary within the consolidated SPL up to the point of disposal. This ensures that the parent captures all relevant income and expenses generated by the subsidiary during the period it was owned.

In accounting for the disposal of a subsidiary, the results reported would typically include revenues, expenses, and thus, the net profit or loss attributable to the subsidiary until the date of sale. This approach provides a complete picture of the business's financial performance and is consistent with the intention of consolidated financial reporting, which aims to reflect the economic reality of the parent and subsidiary's relationship.

Including only the profit from the subsidiary would be incomplete, as it disregards other relevant expenses that contribute to the subsidiary's financial performance. Similarly, just reporting the total equity of the subsidiary or net assets at the disposal date does not reflect the operational results that occurred during the period leading up to the disposal. Therefore, recognizing the subsidiary’s results up to the disposal date is essential for an accurate and transparent representation of