Under IFRS 9, equity instruments must be revalued at fair value through profit and loss or OCI. What happens if a company purchases non-controlling interest in a private company? Is the private company revalued every year to comply with IFRS 9?


Before you start doing anything with your newly acquired item, classify it first.

Are you able to exercise significant influence in that company?

If yes, then apply IAS 28, more specifically equity method for an associate in the individual financial statements of the acquirer.

If not, then it is most likely a financial asset under IFRS 9, most likely classified at fair value through profit or loss OR at fair value through other comprehensive income and it means you should basically revalue the shares to their fair value at the end of the reporting period.