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Dear Sir,
Let say a company had treated the investment in a subsidiary at fv through oci. On the acquisition date, the consideration was $50m but the draft statement in a yr later had shown the investment in sub as $55m.
My question is that why on consolidation, there will be a reversal of the fv adjustments whereby we have to debit OCI & credit investment in sub of $5m?
Thanks Sir
“but the draft statement in a yr later had shown the investment in sub as $55m.”
Why would it? If the investment was %50 million, why would the draft statements now be showing $55 million
Sorry Sir,
Its actually a past yr question from p2 june 2012 q1. The model answer say $5m need to reverse from OCI and credit investment in sub.
Thanks Sir.
Probably because it’s been incorrectly credited to OCI and now needs to be reversed
But if it’s a P2 question, why is it here in F7?
Hello sir,
@
When you are told” included in the trade receivable of H ltd (parent ) is $120 due from S ltd (sub).S Ltd included only $70 of this amount in its trade payable.the difference is due to admininstrave expenses charged to S Ltd by H lted which had not been accounted for by S ltd”.who would you treat it?What has this got to do with the title of this thread?
This thread is called “Investment in Subsidiary” (actually it’s called “Investment in Subsdiary” but it means “subsidiary”)
Your post is irrelevant to this thread
Please post again, under a new thread with an appropriate title and I shall get back to you, hopefully later today
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