Page 278 - F2 Integrated Workbook STUDENT 2019
P. 278
Chapter 12
1.3 FV of subsidiary’s net assets at acquisition
On consolidation, the subsidiaries net assets must be valued at FAIR VALUE (FV).
The assets in the subsidiaries individual accounts will be shown at CARRYING
AMOUNT (CA).
CA does not always equal FV
FV adjustments will be required on consolidation.
Fair value adjustments will be commonly required for:
property plant and equipment
intangible assets
contingent liabilities.
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