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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Step acquisition
Hi Sir, before an investment in associate to become a subsidiary(voting share acquired), the investment in associate usually being equity accounted for, which is cost + post-acquisition profit(CA), how to the change in the carrying amt to the FV(remeasured existing interest to FV at the date of step acquisition) being accounted for? Does the gain or loss go to PnL?
Thank you.
A to S
You are correct: New FV minus CA using equity accounting goes to P&L
