Mar June 2016 Mehran

The fair value is determined from the perspective of a market participant and is not influenced by the Mehran’s decision to discontinue the brand. ”

can you please elaborate this?

why we take 17 as fair value?

@misbahkiran said:
para 25 of IAS 11

” party that participates in, but does not have joint control of, a joint venture shall account for its interest in the arrangement in accordance with IFRS 9 Financial Instruments, unless it has significant influence over the joint venture, in which case it shall account for it in accordance with IAS 28 (as amended in 2011)”

question 1

my question is when When hold controlling interest as a result of preference share will we account for it in accordance with IAS 28?

1. Financial statements are always prepared using ‘substance over form’ concept. We always analyse the economic substance of transactions and arrangements in order to determine their accounting treatment. Therefore, if an investor, based on investment in preference shares, can impact the operating and financial decisions of the investee, we will consider the treatment similar to that of ordinary shareholding.

2. It is possible that voting rights are attached with preference shares, however obtaining controlling interest using them is unlikely. If investor has significant influence or joint control based on preference shares, we will still treat the investment using ‘equity accounting’ under IAS 28. Similarly, if the investor has control over investee, the treatment will be that under IFRS 3.

@misbahkiran said:
why they consider fv of 17 instead of 20?

I neither have question nor answer to the question for reference. If you can type at least the question, it would help in understanding the context.