Hi,
how do we deal with revalution reserve in a subsidiary at acquisition date? Is it shown in W2 when calculating net assets? And also, does it impact calculation of goodwill at acquisition?
And how do we deal revaluation after acquisition in the subsidiary? Does it impact goodwill?
And finally, how is revaluation reserve in a subsidiary shown in CSFP?
thanks in advance
Ask the Tutor ACCA FR
Revaluation reserve in a subsidiary
6y ago#1Hi,
We treat it as another reserve calculation, similar to that of the group retained earnings one.
The group revaluation reserve will be 100% of P plus P's% of S's post acquisition movement in revaluation reserve.
The subsidiary's revaluation reserve does form part of the net assets calculation to start with. You look at the amount at acquisition and at the reporting date too. The movement will then go to the group revaluation reserve working where P takes it's share.
Thanks
Sign into reply to this topic.