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Under IFRS 10. If you have a parent company that has investments through which i

ID: 2403386 • Letter: U

Question

Under IFRS 10. If you have a parent company that has investments through which it earns dividends, are these treated as investments which should be fair valued or should you consolidate?
Prior to these being FV they are recorded at cost during construction phase. Once they go live parent owns a percentage of the asset only, yet has management control but not controlling share. Under IFRS 10. If you have a parent company that has investments through which it earns dividends, are these treated as investments which should be fair valued or should you consolidate?
Prior to these being FV they are recorded at cost during construction phase. Once they go live parent owns a percentage of the asset only, yet has management control but not controlling share.
Prior to these being FV they are recorded at cost during construction phase. Once they go live parent owns a percentage of the asset only, yet has management control but not controlling share.

Explanation / Answer

IFRS 0 rules states that if the parent company has investments through which it earns dividends should be treated as fair valued because generally requires assets acquired and liabilities assumed to be measured at their fair values at the acquisition date