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The question says that investment in sub has inrease in year 1 is 90 mln and in year 2, 95. The differesnce has been recognised as gain in OCI. Why do we need to reverse this gain when consolidating ?
Hi,
This has been appearing more recently in the exam so is important to be happy with it.
On consolidation we remove the investment in the subsidiary, as we cannot have an investment in ourselves. We will also need to remove any gain or loss on this investment too as it is a gain or loss that is from the investment in ourselves.
Thanks
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