Consolidation when a subsidiary is NOT a business under IFRS - example

[@jigna645]

Dear Silvia, Thanks for video. Please can you guide in subsequent year asset will be written down and new assets will be added in that case how to eliminate investment.

[@MO-cr9nt]

Thanks Silva for your educative contents. Please do video on steps /how to person goodwill impairment test.

[@beomkomap]

Hi Silvia, could you advise why Baby Ltd is not a business under IFRS 3? And if it does not constitute a business, how is it different with a Parent-Sub consolidation? Many thanks.

[@CPDbox]

Baby is not a business because it is given by the question. In real life, it could happen that the companies do not perform any operating activity, just carry some assets. IFRS 3 precisely defines what constitutes a business. You can learn more here: www.cpdbox.com/ifrs-3-a-business-or-an-asset/ As for the difference - well, I think this is well covered in this video, so please rewatch. Thank you!

[@yuliya3294]

Silvia, thank you for video. However, it is still unclear how to show the assets aquired on BS subsequently, e.g. if PPE grows to 20.000 in the next year, with the relative adjustment in returned earnings, how will we show the assets of Baby on consolidated BS? How will NCI be adjusted.

[@CPDbox]

Well, that's for another video, but thank you, I will try to make it.

[@MB-mz7us]

Thanks for your efforts Is there any course for certIA

[@halimwijaya9994]

hi silvia, thanks and appreciate for your hardwork. I need to confirm "allocate the cost of the group to individual assets and liabilities based on their fair value at acquisition date", monetary asset like cash or receivables should not being added by allocate of the "goodwill" right?

[@aidanbowen7910]

If Mommy acquires the remaining NCI, would the transaction be recorded in equity, per IFRS 10 para 23?

[@samershawqal6590]

Thanks... In order to do consolidation, should the assets in Mammy's statement be in fair value?

[@CPDbox]

No, unless required by another standard - Mommy is not a subsidiary. I do need to say though that both parent and subsidiary should apply the same accounting policy to the like items.

[@yemensport1997]

So great.

[@mdasifuddin184]

Plz Make a video on IFRS 17

[@amilasampath5709]

Madam, If there is liabilities how can we allocate cost of group ?

[@Zhingkham]

Madam…help needed greatly. I have problem is applying discount factor for advance lease payment with effect from 1st September for one year for 30 years. I could not somehow apply annuity formula for 1st September to December..your help will be greatly appreciated as always.

[@CPDbox]

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