[Pavel]

I am sorry, but I still can’t get it.

Could you explain in my examples, please:

say, we have cost of an asset – 3,5m$ and AD (1.5m$)
we revalued the asset at 4m$

We have to do the following entries:

Dr AD 1.5m$ to remove the current AD
Cr Revaluation reserve 1.5$m

Dr Cost of asset 0.5m$ to change “cost” to the revalued amount
Cr Revaluation reserve 0.5$

Thus we have Cr balance 2m$ – is it going to SoFP ?
Do we have any profit in statement of Comprehensive income in that case ?
Is it possible to get any expense\loss in PL statement?

Thank you!

[Pavel]

Teacher, thanks a lot!

There are so many “issues” and I’ve just forgotten about 3 posible cases, about nci fair value :

• goodwill attributable to the NCI on acquisition was $x, or
• the NCI investment was estimated at $x, or
• the market value of the subsidiary shares immediately before acquisition was $x

and of course it could be measured on proportional basis.

Thank you!

[Author]

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