Professional Services Groups · Track 2 · Tutorial 2 of 3

Sell a practice and read the group gain

When a group sells a practice, its own books show one gain and the group accounts another. The group’s gain is measured against what the group carried the practice at, so the profit it already reported isn’t counted twice.

You will needThe practice recorded as a subsidiary, with its acquisition record and its months loaded up to the sale. The sale recorded in your parent’s own books. Pro or Premium edition.

By the endCompany R out of the group from November 2026, with a group gain of 300,000 against Your Group’s own 600,000.

1Know why the two gains differ

In January 2025 Your Group bought 100% of Company R, a tax practice, for 1,000,000. Its net assets were 700,000, at fair value and in its books alike, so goodwill was 300,000. Since then Company R has made 300,000 of profit, so its net assets are now 1,000,000.

In November 2026 Your Group sells all of Company R to a partner-led buyout for 1,600,000.

Your Group’s own books record the 1,600,000 received against the 1,000,000 cost, a 600,000 gain; the group accounts compare the 1,600,000 with Company R’s 1,000,000 net assets and its 300,000 goodwill, a 300,000 gain, because the 300,000 of profit since the purchase is already in group results — The sale in Your Group’s own books (left), and in the group accounts (right).

Your Group’s own gain	Proceeds less what it paid: 1,600,000 − 1,000,000 = 600,000.
The group’s gain	Proceeds less what the group carried Company R at: its net assets and its goodwill. 1,600,000 − 1,000,000 − 300,000 = 300,000.
The difference	The 300,000 Company R earned while the group owned it. The group reported it as profit month by month, so it isn’t counted again at the sale.

2Check the accounts

Open Ownership & Equity → Ownership, and open Posting accounts with the gear beside Group structure.
Choose a profit and loss account for Disposal gain/loss (loss of control): the group’s gain goes here.
Choose the account Your Group records its own gain on selling shares in for Parent's gain/loss on sale of shares (P&L), and click Save.
Click Company R, open Totals and accounts for this company, and check Investment in subsidiary is chosen.

Record the sale in Your Group’s own books with its gain on the parent’s gain/loss account. BrizoConsol takes that gain back out of group profit and posts the group’s own gain instead.

3Record the sale

Beside Company R’s Share purchases and sales, click + Record, then Sold shares.
Keep Your Group as the parent, and choose Nov-2026 and 100.
Enter the Disposal amount, 1,600,000, and click Add Record.

Selling the whole holding leaves nothing to classify, so the dialog doesn’t ask for a relationship or a retained interest. Its notice reads: This sale disposes of the whole holding, so control is lost and nothing is retained. Company R is consolidated up to the month before Nov-2026.

4Read the group gain

There is nothing to post: saving the record recalculates the group and posts the entries. Open Reports → Profit & Loss for Nov-2026 with Show Entities on.

Profit & Loss for Nov-2026 with Show Entities: Your Group’s own 600,000 gain on sale of shares is taken out in Eliminations & adjustments, which also holds the group’s 300,000 gain on disposal, so the Group column shows 0 and 300,000 — Your Group’s own gain (1), taken out and replaced by the group’s gain (2), and the group total (3).

The entry behind it is in Review → Elim. & Journals Report: for Nov-2026, search for NCI-AUTO-ACQ and click Auto NCI loss-of-control disposal posting Company R (DISPOSE). Its lines:

Line	What it is	Amount
Auto NCI net assets derecognition - loss of control	Company R’s net assets leave the group: one line for each of its equity accounts.	1,000,000
Auto NCI investment elimination reversal - loss of control	Your Group’s 1,000,000 cost, which the group eliminated, is put back so the sale in Your Group’s books can clear it.	1,000,000
Auto NCI goodwill derecognition - loss of control	The goodwill from the purchase leaves the group.	300,000
Auto NCI parent gain on sale - loss of control	Your Group’s own 600,000 gain, taken out of group profit.	600,000
Auto NCI disposal gain/loss - loss of control	The group’s gain, on the Disposal gain/loss (loss of control) account.	300,000

Check

On Reports → Profit & Loss for Nov-2026, Disposal gain/loss (loss of control) is 300,000 and the parent’s gain on sale nets to nil for the group. Company R’s fees and costs are in the group up to October. From November its assets, liabilities and goodwill are gone from the Balance Sheet.

5If something goes wrong

What you see	What to do
Loss-of-control disposal requires a disposal gain/loss P&L account in Posting accounts on the Ownership page.	Choose Disposal gain/loss (loss of control) in Posting accounts.
Select the account the parent posts its gain or loss on the sale of shares to, in Posting accounts on the Ownership page.	Choose Parent's gain/loss on sale of shares (P&L) in Posting accounts.
Investment account must be configured for loss-of-control disposal carrying amount derecognition.	Choose Investment in subsidiary under Company R’s Totals and accounts for this company.
Disposal proceeds are required.	Enter the Disposal amount on the Sold record.
The group gain is the same as Your Group’s own gain	Check the parent’s gain is recorded on the account chosen as Parent's gain/loss on sale of shares (P&L): that is the account BrizoConsol takes it out of.

Want more detail? See the documentation

Ownership NCI — Non-Controlling Interest Elim. & Journals Report

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