Hi guys, Please i need your help in the below.
In 2021 Company A purchased 100 % of the shares of company B who is also a parent company, since it control/owns 100% of company C.
Company C has been the subsidiary of company B since 2010, and company B has been preparing consolidated financial statements since then.
When we are Recognising and measuring goodwill for the consolidation of Company A, we should take into consideration the net assets ( Share capital + Retained earnings ) of the consolidated Financial statement of company B ( which includes the Retained earning of company C since 2010), or we should only take into the net assets (Share capital + Retained earnings of Company B on a standalone Level.
NB: When we take into consideration the Net assets on company B on a Consolidated level, we end up with with a goodwill, however when we only take into consideration the Net assets on company B on a standalone level, we end up with gain on bargain.
Thank you for your help
ifrs 3, consolidating a parent company
Re: ifrs 3, consolidating a parent company
Look at whole of the acquired subgroup.