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Hi,
I have some questions relating to subsidiaries and associates
1) Does the investment in subsidiary figure on parent’s individual SoFP change through years or it always show the cost amount of investment?
2) When calculating the disposal of associate, what is the differences between the parent’s individual financial statements and the group consolidated financial statements? And how the gain/loss from disposal will be calculated, we will use the cost amount of investment in associate or we will use the carrying value?
Thank you so muchHi,
1) The investment in the subsidiary that is held in the parent’s individual accounts will likely be held at FVTOCI and so as the FV changes the value of the investment will change. This is how it would work in reality but I don’t think you will see this in the FR exam.
2) This is not on the FR syllabus and you do not need to worry about it.
Thanks
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