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March 2020 Q1(c)
The suggested answer said that Quaver Co should not consolidated into the Hummings group FS. Quaver Co should initially be valued at FVLCTS with any subsequent decreases in FVLCTS taken to consolidate profit or lossI am a bit blur on this sentence. First, it mention should be consolidate, but later it says taken to consolidate P&L? Can u explain to me this further?
Thank You
I am not sure if I fully agree with the printed answer.
In the SFP the assets and liabilities of the subsidiary would be presented directly beneath the current assets and current liabilities of the other companies in the group.
In the P and L the subsidiaries results would be presented as a single line under discontinued operations.
The question was really trying to test whether candidates knew that temporary control means that subsidiaries should be presented as a discontinuance
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