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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › fair value
If the fair value is greater than the carrying amount, then u add the amount to the workings in the net assets of the subsidiary under working 2) of consolidation, and u minus the depreciation.
IF the fair value is below the carrying amount then u do the opposite in the Working 2 for both depreciation and the fair value amount????
Thnk You
In working W2 there is NO adjustment for depreciation on any fair value adjustment
There IS in working W3
If fair value is lower than carrying value then, in working W2, we reduce the value of the “fair value of the subsidiary net assets at date of acquisition” but there is NO adjustment for any depreciation
There IS in working W3