Any difference between fair value paid and the carrying amount of the additional interest acquired is:
A) recognised in the income statement.
B) recognised in the statement of comprehensive income.
C) recognised directly in equity.
D) recognised directly in equity and attributed to the owners of the parent.

Question

Quizplus · Accepted Answer

When an entity acquires additional interest in a subsidiary, the difference between the fair value paid and the carrying amount of the additional interest is recognized directly in equity and attributed to the owners of the parent, as it is considered a transaction with owners in their capacity as owners.

Any Difference Between Fair Value Paid and the Carrying Amount