Hi all, an accounting query. Hopefully this one will be simpleish- I'm relatively new to getting into accounting. IF a company sells a fixed asset to a wholly owned subsidary- how should the profit be accounted for? The kicker is that the ultimate parent or overall undertaking is based in Hong Kong or listed on HKSE and base din the Cayman Islands, but originally was solely UK based. Birmingham sold St Andrews to a wholly owned subsidary last summer for £22,760,000, added to this was a deferred capital grant that was released of £1,466,357. Net Book Value on Disposal was £7,037,591...£17,188,766 was the p[profit, which was comprised of proceeds + capital grant-NBV! Once again that seems fine, but my question is that if disposed to a wholly owned subsidary of Birmingham Sports Holdings Limited, should Birmingham City PLC, the largest UK based company show this profit as income to carry forward- whereas the Birmingham Sports Holdings Limited on the HKSE does not! Or should it cancel out? I've read different answers to this Accounting q online.