June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Investment in subsidiary

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

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 23, 2020 at 5:22 am #581567
arunotes
Member
- Topics: 65
- Replies: 39
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
Keymaster
- Topics: 16
- Replies: 3409
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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.