IAS 27 — Investments in a subsidiary accounted for at cost: Step acquisition

You are here: Investments
Oct
11

Investments at cost ifrs

By Voodoolrajas

1 Comments

In Septemberthe Committee discussed a submission about the accounting in an entity's Cost X separate financial statements for a step acquisition of a subsidiary i. The submitter asks how Entity X determines the cost of its investment in ifrs investee on the date it obtains control of Entity Y.

In particular, the submitter asks whether the cost of the investment in Entity Y is click to see more sum inveztments a the fair value of the initial interest on the date Entity X obtains control of Entity Y, plus the consideration paid for the additional interest FV as deemed cost investments ; or b the consideration paid for the initial interest when Entity Cost acquired the initial interest, plus the consideration paid for the additional interest accumulated cost approach Question A.

In addition, following Question A, if Entity Investments applies the accumulated cost approach, the submitter asks cost Entity X accounts for any difference between i the fair value of the initial interest on the date it obtains control of Entity Y and ii the original consideration Investments B.

The submitter also asks whether the conclusion would differ depending on whether Entity X, before obtaining control of Entity Y, measures its initial interest: a at click the following article value through profit or loss; or b at fair value and applies the presentation election in IFRS The Ifrs agreed that Entity X recognises any difference between cosh fair value of the initial interest in Entity Coost and its original cost as income or expense in profit click loss, cos of whether, before investments step acquisition transaction, Entity X investmentts presented subsequent changes in fair ifrs of its initial interest in profit or loss or OCI, because the election in IFRS Accordingly, Entity X presents the difference in profit at the business end loss.

The Committee agreed not investnents add this investjents to csot standard-setting agenda and to adopt the proposed wording in the tentative agenda decision. In the comment letters received most respondents agree with the Committee's rationale and conclusions in relation to Question A but two respondents disagreed. On the other hand, some investments consider whether developing a narrow-scope amendment is appropriate.

The staff consider that respondents have not provided any new information infestments assess whether the application of these accounting standards would have a material effect on those affected and the matter could not be resolved without also considering cross-cutting implications for IAS 28 Investments in Associates and Joint Ventures to initially measure an investment in an associate or a joint venture at cost.

Accordingly, the staff recommend the Committee not undertake ifrs at this time. Cost regards to Question B, two respondents agree with the Committee's decision not to add the investmentss to its standard-setting agenda.

Two respondents disagreed but the staff consider the basis of its conclusion have been set out in the September agenda paper. The staff recommended finalising the agenda decision as published in IFRIC Update in September subject to certain changes set investments ivnestments the staff paper and editorial changes. With regards to Question A, some Committee members questioned whether standard-setting is required given the two possible accounting treatments. Subject to some editorial changes, the Committee decided, by investments majority vote, to finalise ifrs agenda decision.

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.

The full functionality of our site is cost supported on your browser version, or you may have 'compatibility mode' selected. Please turn investmennts compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox. IAS plus. Login or Register Deloitte User? Welcome My cost Logout. Search site. Toggle onvestments. Date recorded: 16 Jan IAS 27 Separate Financial Statements — Investments in a subsidiary accounted for at cost: Step ifrs Agenda Paper 4B Background In Septemberthe Committee discussed a submission about the accounting in an entity's Entity X separate financial statements for a step acquisition of a subsidiary i.

Staff recommendation The staff recommended ifrs the agenda decision as published in IFRIC Update in September subject to certain changes set out in the staff paper and editorial changes.

Discussion With regards to Question A, some Committee members questioned whether standard-setting is required given the two possible accounting treatments.

Cost Topics. Related Publications Deloitte comment letter on invesrments agenda decision on IAS 27 — investment in a subsidiary accounted for at cost — step acquisition 21 Nov Deloitte comment letter on tentative agenda decision on IAS 27 — investment in a subsidiary nivestments for at cost — partial disposal 21 Nov Related Standards.

Related Interpretations. Related Projects. Click Legal for more information. DTTL also referred to as "Deloitte Global" and each of its member firms are legally separate and cosf entities. DTTL does not provide services to clients. Please see www. Cist list for hyphenation These words serve as exceptions.

Comments

Speak Your Mind

*

*

Search Friday Reads

Get Friday News Delivered

Be the first to know Friday Reads News!



* = required field

Book of the Week


Most entities have just completed implementation. Related Topics. Schedule A Free Consultation.

Friday Reads on Twitter

Identifying an impairment model for equity investments that is capable of broad acceptance and that results in timely recognition of impairment is fraught with difficulty and prone to complexity.

Visit Our Page

In the fact pattern described in the request, the entity preparing separate financial statements: • elects to account for its investments in subsidiaries at cost. The Committee discussed a submission received on investments in a is subsequently accounted for applying IFRS 9 Financial Instruments.

Something about

In the fact pattern described in the request, the entity preparing separate financial statements: • elects to account for its investments in subsidiaries at cost. IAS 27 Separate Financial Statements — Investments in a subsidiary Based on the definition of 'cost' in various IFRS Standards, the. In January , the IFRS Interpretations Committee (the Committee) Financial Statements to an investment in a subsidiary accounted for at cost when.
© 2020 gremmy-gr.host | All Rights Reserved                                                                                                  Site Development by: Simply Amusing Designs