Questions & Answers
Testing goodwill for impairment
Question Our company acquired a subsidiary and goodwill on acquisition arose. According to IFRS, we have to test the goodwill for any impairment at least annually. How can we do it? The goodwill does not have any fair value and it’s not possible to determine…
Accounting when acquired subsidiary is not a business
Question We (the parent) acquired a company (the subsidiary) and we identified that the company does not constitute a business, therefore we cannot follow the acquisition method under IFRS 3. The subsidiary only owns some assets and liabilities and we need to account for this…
Non-controlling interest in a private company
Question 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? Answer Before…