Where at acquisition date the parent holds shares in the subsidiary that it has previously acquired, this investment must be revalued to fair value at acquisition date.

Question

Quizplus · Accepted Answer

According to IFRS 3 Business Combinations, the parent company's investment in the subsidiary must be revalued to fair value at the acquisition date, even if the parent already held shares in the subsidiary before the acquisition. This is to ensure that the consolidated financial statements reflect the full value of the acquisition.

Where at Acquisition Date the Parent Holds Shares in the Subsidiary