Question of CSFP has mentioned Revaluation of Land by $1 since acquisition so don't we have to include it with in the net asset of Subsidiary at FV ??
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Revaluation of Land
I would like to amend the question i mentioned here:
There is Loss on revaluation of land of parent company of $2200 & Gain on revaluation of Land in Subsidiary company of $ 1000 in the SPLOCI given.
Then after that additional notes give related to land i.e.:
Subsidiary's land, valued using revaluation model increased by $1 million since the acquisition.
so my question is don't i have to include the revaluation of land in the calculation of net asset of subsidiary at FV???
Hi,
The $1 million increase in the value of the land is already included within the PPE that is consolidated, so there is no requirement to adjust the net assets working.
TO account for the revaluation we need to set up a group reserves working for the revaluation surplus. This is treated similar to the group retained earnings in that we include 100% P and P's% of S's post acquisition movement in revaluation reserve. Se we'd add our share of the $1 million.
Thanks
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