Investments in subsidiaries by another partly owned subsidiary where the acquisition is non-sequential require adjustments to be made to the fair value of the investments.

Question

Quizplus · Accepted Answer

When a subsidiary invests in another partly owned subsidiary, the fair value of the investment needs to be adjusted to reflect any changes in the value of the subsidiary being invested in. This adjustment is necessary even if the acquisition is non-sequential, meaning it is not part of a larger acquisition or series of acquisitions.

Investments in Subsidiaries by Another Partly Owned Subsidiary Where the Acquisition