Property Groups · Track 2 · Tutorial 2 of 2

Sell a property SPV

A building held in an SPV is usually sold by selling the SPV’s shares. The group’s gain is measured against the SPV’s net assets, building included, so the rent and fair value gains it already reported aren’t counted twice.

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

By the endHarbourfront SPV out of the group from December 2026, with a group gain of 700,000 against Your Group’s own 1,200,000.

1Know why the two gains differ

Your Group set up Harbourfront SPV in January 2023 with 3,000,000 of share capital to own one office building. The SPV carries the building at fair value in its own books, so its rent and the building’s fair value gains go through its own profit. By the end of November 2026 those have added 500,000, and its net assets are 3,500,000.

In December 2026 Your Group sells all its shares in the SPV for 4,200,000. Selling the SPV’s shares, not the building, is how most property is sold: the building stays in the SPV and leaves the group with it.

Your Group’s own books record the 4,200,000 received against the 3,000,000 it put in, a 1,200,000 gain; the group accounts compare the 4,200,000 with the SPV’s 3,500,000 net assets, a 700,000 gain, because the 500,000 of rent and fair value gains since 2023 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 put in: 4,200,000 − 3,000,000 = 1,200,000.
The group’s gain	Proceeds less the SPV’s net assets, building included at fair value: 4,200,000 − 3,500,000 = 700,000. There is no goodwill: the group set the SPV up rather than buying it.
The difference	The 500,000 of rent and fair value gains the group has reported since 2023.

The SPV’s own ownership record is the January 2023 Bought 100%, with an investment cost and net assets at date of 3,000,000 each. Group journals you posted for the SPV, such as a group-level revaluation of the building, aren’t part of this sale’s entries: reverse them in the month of 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 Harbourfront SPV, 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 Harbourfront SPV’s Share purchases and sales, click + Record, then Sold shares.
Keep Your Group as the parent, and choose Dec-2026 and 100.
Enter the Disposal amount, 4,200,000, 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. Harbourfront SPV is consolidated up to the month before Dec-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 Dec-2026 with Show Entities on.

Profit & Loss for Dec-2026 with Show Entities: Your Group’s own 1,200,000 gain on sale of shares is taken out in Eliminations & adjustments, which also holds the group’s 700,000 gain on disposal, so the Group column shows 0 and 700,000 — 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 Dec-2026, search for NCI-AUTO-ACQ and click Auto NCI loss-of-control disposal posting Harbourfront SPV (DISPOSE). Its lines:

Line	What it is	Amount
Auto NCI net assets derecognition - loss of control	The SPV’s net assets leave the group: one line for each of its equity accounts.	3,500,000
Auto NCI investment elimination reversal - loss of control	Your Group’s 3,000,000 cost, which the group eliminated, is put back so the sale in Your Group’s books can clear it.	3,000,000
Auto NCI parent gain on sale - loss of control	Your Group’s own 1,200,000 gain, taken out of group profit.	1,200,000
Auto NCI disposal gain/loss - loss of control	The group’s gain, on the Disposal gain/loss (loss of control) account.	700,000

Check

On Reports → Profit & Loss for Dec-2026, Disposal gain/loss (loss of control) is 700,000, and the SPV’s rent is in the group up to November. On Reports → Balance Sheet for Dec-2026, the building and the SPV’s other assets and liabilities are gone.

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 Harbourfront SPV’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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