Separate FS:
As far as i know when there is for example a sale of subsidiary to a related company ,seling price being over and above the subsidiary 's fair value ,is considered as a sale not performed on an arms length basis hence the profit from sale can be recognised directly in equity.
Does anyone knows where i can find this? In which IFRS? I know that this applies for all IFRSs.Or if there is a guide lets say from a big 4 Company
Related Party transactions
Re: Related Party transactions
Hi stella,
Business Combinations Under Common Control are not addressed by any IFRS at the moment. The IASB is currently looking into this. Companies need to develop an internal accounting policy. You probably have seen this policy in one of the Big 4 publications. Search for accounting for business combinations under common control and you will find your answer. (The accounting treatment you described is usually called predecessor's accounting method.)
Business Combinations Under Common Control are not addressed by any IFRS at the moment. The IASB is currently looking into this. Companies need to develop an internal accounting policy. You probably have seen this policy in one of the Big 4 publications. Search for accounting for business combinations under common control and you will find your answer. (The accounting treatment you described is usually called predecessor's accounting method.)
Re: Related Party transactions
If it's separate FS, business combination accounting won't be applied. You can refer to our knowledge base: https://ifrscommunity.com/knowledge-bas ... tatements/