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Investment in subsidiary

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

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August 23, 2020 at 5:22 am #581567
arunotes
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Hi I would like to ask investment in subsidiary should be carried at cost or fair value in the parent company? also, how about in the calculation of goodwill?
In regards to Specimen Paper Sep18, Kutchen had carried the investment in Niche at cost <<< Is there any implied meaning?
Thank you sir
August 23, 2020 at 4:26 pm #581641
Stephen Widberg
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Strictly speaking it would probably measured at fair value unless they were unable to estimate fair value. For clarity in some consolidation questions they just give you the cost. You would normally need the cost to calculate goodwill.
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