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Forensic Accounting

Liuquidating Subsidiary in Parents book


We want to know about the accounting and financial reporting, as per International Standards, in the parents book who has a subsidiary for couple of years and showing as Investment in Subsidiary at cost plus share of net assets, which is under voluntary liquidation at the year end.

Specifically, I want to know;

•    Classifying of this investment in equity FS of Parent company.
•    Any impairment of investment is to be booked.
•    In consolidated FS (as company have another subsidiary as well), whether the liquidating subsidiary will be consolidated or shown as investment only.
•    Any other notes in equity and consolidated FS required for subsidiary under voluntary liquidation.

asked Jul 1, 2014 in IFRS 10 - Consolidated Financial Statements by anonymous

1 Answer

0 votes

You can show it as an asset held at its fair value as at the date the liquidation procedure started as it is not subsidiary any more. As the same is held for investment, consolidate the profit or loss for the period up to date of liquidation and shown separately as a discontinued operation.

answered Dec 9, 2016 by Shivangi Level 4 Member (7,570 points)



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