When a parent has control over a subsidiary with less than 100 percent ownership, and thereafter increases its ownership, the parent remeasures the prior interest to fair value.

Question

Quizplus · Accepted Answer

When a parent increases its ownership in a subsidiary where it already has control, the prior interest is not remeasured to fair value. Instead, the transaction is treated as an equity transaction, and any difference between the consideration paid and the carrying amount of the non-controlling interest is recognized in equity.

When a Parent Has Control Over a Subsidiary with Less