Subsidiary has internally generated an intangible asset that it does not recognise in its own account balances and financial statements.Parent assesses the value of the intangible at $500 000.The correct consolidation data adjustment for the intangible is:
Dr.Intangible $\quad$$\quad$$\quad$$\quad$$500 000
Cr.Asset revaluation reserve$\quad$$\quad$$\quad$ $500 000

Question

Quizplus · Accepted Answer

In consolidation, internally generated intangible assets that are not recognized in the subsidiary's financial statements should not be recognized in the consolidated financial statements either, as per accounting standards (e.g., IFRS, US GAAP). The correct treatment would not involve creating an asset and a reserve out of an unrecorded intangible asset.

Subsidiary Has Internally Generated an Intangible Asset That It Does \quad

Subsidiary Has Internally Generated an Intangible Asset That It Does $\quad$