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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Net assets
Hello. I hope you are well.
Is it true that the true market value of a subsidiary is the value of shares of the subsidiary traded in the stock exchange, then what is the fair value of the net assets!?
Isn’t the fair value of subsidiary net assets is the true value of the subsidiary?
Please clear this confusion to me!!!
The market value of a company is the market value of the shares on the stock exchange but this is only relevant if the shares are traded on a stock exchange which is not likely to be the case for Paper FA.
The fair value of the assets is only relevant when calculated the goodwill on consolidation and is given in the question (if relevant) in Paper FA.