Hi,
Investments in subsidiaries measured at fair value, under IFRS 9.
Are these invesments subject to impairment test under IAS 36. As per my understanding , no!
For example :
As at 31/12/2022 do we have to compare the carrying value of these investments to their net assets in order to check whether an impairment is needed?
Thanks
IAS 36 on Investments in subsidiaries measured at fair value under IFRS 9
Re: IAS 36 on Investments in subsidiaries measured at fair value under IFRS 9
You don't need to do impairment tests on assets carried at fair value, since they're held at fair value!
How are you determining the fair value though.....
How are you determining the fair value though.....
Re: IAS 36 on Investments in subsidiaries measured at fair value under IFRS 9
Through a valuation report prepared by valuers assigned by the Company's Management.
Re: IAS 36 on Investments in subsidiaries measured at fair value under IFRS 9
Hopefully that professional valuation already considers the assets and liabilities of the sub, in which case you don't need to do another fair value exercise yourself unless you think it's wrong.
Re: IAS 36 on Investments in subsidiaries measured at fair value under IFRS 9
It's pretty common for the fair value to be way higher than a company's book value https://pages.stern.nyu.edu/~adamodar/N ... vdata.html