, I had a question that when an investment turns into a subsidiary the increase in the value of investment is treated in sopl , however when an investment goes to an associate its done the same thing but its first subtracted from OCE, why the double standards?
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Consolidation Step acquisition
10y ago#1Hi,
If we increase out shareholding from and investment to an associate we still revalue to fair value the existing interest and any gain or loss goes through profit or loss.
Where have you seen the subtraction from OCE that you mention?
Thanks
Sir I saw In Kaplan kit question Bravado , where for the associate reclasifcation gain was first removed from OCE then added to Retained earnings ,
Maybe others error in kit
10y ago#4Hi,
If the previously held investment was held as fair value through OCI then I presume then that the gain is being recycled through profit or loss.
Thanks
thanks sir
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