Subsidiary acquired exclusively for resale
In this lesson, you'll learn how to account for a subsidiary acquired exclusively for resale under IFRS consolidation rules.
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In this lesson
- 0:00 Subsidiaries acquired for resale
- 0:10 IFRS 5 held for sale criteria
- 0:32 Disposal group classification and presentation
- 0:53 Fair value less cost to sell measurement
About this lesson
The key distinction is that you're only exempt from consolidation if the subsidiary meets the IFRS 5 held for sale criteria: it's available for immediate sale in its current condition, the sale is highly probable, and it's likely to be disposed of within one year. When these criteria are met, you'll present the subsidiary as a disposal group classified as held for sale, combining all assets into one line and liabilities into another, and measuring everything at fair value less cost to sell at both acquisition and subsequent reporting dates. This approach is essential for Strategic Business Reporting and Advanced Financial Reporting papers, where understanding disposal group accounting directly impacts how you consolidate group financial statements.
Duration: 1m
Transcript
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