Say I have a subsidiary company A with only +100 in intercompany receivable, Dividend account is -1000, retained earnings +1000, Fx translation reserve -50, issued and paid up capital for another subsidiary B +50, issued and paid up capital for company A -100. If I were to wind down this entity A (Not dispose of, just want to close it down), what entries do I book? And do I have to record anything in my books as the parent? Any reference to the standard will be greatly appreciated.
my thoughts: Do you as the parent derecognise any goodwill on acquisition to the P&L. Does the subsidiary, A then write-off the $100 intercompany receivable to the P&L? that way equity becomes nil and balance sheet is nil?