Additional purchases of shares in a subsidiary should be accounted for by the combined tranche method,according to AASB 3.

Question

Quizplus · Accepted Answer

AASB 3 does not specify the "combined tranche method" for accounting for additional purchases of shares in a subsidiary. Instead, it deals with business combinations and the acquisition method for such transactions. Additional purchases of shares in a subsidiary after control is obtained are generally accounted for as equity transactions with owners in their capacity as owners, not under AASB 3.

Additional Purchases of Shares in a Subsidiary Should Be Accounted