Page 47 - PowerPoint Presentation

COMPLEX GROUPS

Mark-to-Market Reserve

• Please note that any mark-to-market reserve in the

separate financial statements of a subsidiary relates to

investments in equity instruments that the subsidiary

holds and it should be treated accordingly.

• This means if the mark-to-market reserve relates to a

simple investment (not a sub-subsidiary, an associate, a

joint venture or a joint operation) of that subsidiary, it

will not be eliminated on consolidation.

• On the other hand, if it relates to a sub-subsidiary or

associate or joint venture, it will be reversed on

consolidation.

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