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Change in a group structure

1.3 Subsidiaries acquired for resale

If a subsidiary is acquired exclusively for resale and meets the criteria to be ‘held for
sale’ then:

 its asset are amalgamated into one line in the statement of financial position
and its liabilities into another

 it is measured at fair value less costs to sell.

Further detail can be found in Section 4 of Chapter 21 in the Study Text.

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