If a revaluation of the subsidiary's assets is performed on consolidation, the subsidiary's assets are carried into the consolidated statement of financial position at:
A) current replacement cost.
B) net present value.
C) fair value.
D) historical cost.

Question

Quizplus · Accepted Answer

If a revaluation of the subsidiary's assets is performed on consolidation, the assets should be carried into the consolidated statement of financial position at fair value. This reflects the most accurate representation of the subsidiary's asset values and aligns with the principles of fair value accounting.

If a Revaluation of the Subsidiary's Assets Is Performed on Consolidation