(Advanced Financial

Accounting and Reporting

Part 2)
LECTURE AID

2017

ZEUS VERNON B. MILLAN

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Chapter 20 CONSOLIDATED FS (Part 4)

 
Learning Objective

• Prepare the consolidated financial

statements when the investment in
subsidiary is measured at other than cost.

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Measurement of investment in subsidiary

In the parent’s separate financial statements, the investment in

subsidiary may be measured, subsequent to acquisition date, either:
a. at cost;
b. in accordance with PFRS 9 Financial Instruments; or
c. using the equity method.

Regardless of the measurement basis, the consolidated accounts should

result to the same amounts. This is because the investment in
subsidiary and the effects of its measurement basis are eliminated in
the consolidated financial statements.

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• (APPLICATIONS: PROBLEM 19-1: #’s 1 to 8)

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 OPEN FORUM
QUESTIONS????
REACTIONS!!!!!

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IFA PART 1A: Zeus Vernon B. Millan
 END

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