Hi !
Company A has 50% shareholding in company B (associate). Investment accounted for under equity method and share of accumulated loss exceed its cost, so company A not recognized the further loss as per IAS 28.
During the current year, other shareholders of company B transferred all remaining share (50%) share to the Company A.
During the current year, company B is become 100 % own subsidiary of the Company A.
As per IAS 27, the Company A can classified its investment in subsidiary under equity method. Under IAS 28, such investment will discontinue in the Parent financial statements (Para 22(a)).
What your opinion in respect of
i) Presentation of investment in subsidiary in the books of the Parent.
ii) Accounting of investment in subsidiary under IAS 27.
Presentation of investment in subsidiary 100 %
Re: Presentation of investment in subsidiary 100 %
if you choose to continue using the equity method under IAS 27, then I wouldn't remeasure the 'old' interest per analogy to IAS 28.24
In consolidated financial statements, you need to account for the business combination under IFRS 3. Regarding previously held 50% interest, see this section: https://ifrscommunity.com/knowledge-bas ... the-target
In consolidated financial statements, you need to account for the business combination under IFRS 3. Regarding previously held 50% interest, see this section: https://ifrscommunity.com/knowledge-bas ... the-target
Re: Presentation of investment in subsidiary 100 %
Does A not have a long-term interest (as defined in IAS 28) that should be reduced by the accumulated loss or a legal or construction obligation to repay B's debt on its behalf?