Parent’s brand name, which was internally generated so not shown in Parent’s financial
statements but has a fair value of $3 million. should Brand be recognised as assets in the
consolidated financial statements of Parent?
Ask the Tutor ACCA FR
consolidation
5y ago#1Yes, as the brand has a fair value and we will have paid for it as part of the purchase consideration then we can capitalise it in the group accounts.
Thanks
Sir, in books there is written if subsidiary company has not recognised its internally generated brand in its financial statemnet and has a fair value, we can recognise it in consolidation statements. i wanted to know if parent company has internally generated brand with a fair value of 3m and parent does not recognise brand in individual statement. what will we do in consolidated statement? can we inculde parents brand or not?
5y ago#3Yes, you include the brand in the group accounts. It is not recorded in the individual accounts of the subsidiary, or the parent.
Thanks
thank you sir!!!
Sign into reply to this topic.