Company A has an investment in a subsidiary, B Ltd, stated at cost of £100 in its accounts. B Ltd has net assets of £500,000. If A Ltd distributes that investment to C Ltd as a dividend in specie, what would be the value of the consideration under current UK GAAP? In other words, would the dividend be £100 or £500,000 (with £499,900 being a profit on disposal in A's accounts, effectively putting £499,900 distributable reserves into C Ltd)?
FRS102 seems to say the latter (fair value), but I can't find anything in current UK GAAP.