- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › giving away assets in exchange for equity interest
sir i understand that when assets are contributed by entities in exchange for equity interest in Joint Venture or Associate, then the contributor recognises a portion of gain/loss accruing to other investors, in the contributor’s individual financial statements.
case 1: However, what am not clear with is, when an entity contributes assets in exchange for a CONTROLLING stake in another company then how should gain/loss on transfer be recognised in the individual financial statements of the co which is intending to become parent? full gain/loss? or only NCI %?
case 2: what about situation when a transfer is done in a joint operation? full gain/loss or only that accruing to other joint operators?
1. Control – full profit or loss in parent’s FS.
2. JO – consistent with JV.