When Are Parent Companies Allowed to Comprehensively Revalue the Assets

question 28

Multiple Choice

When are parent companies allowed to comprehensively revalue the assets and liabilities of a subsidiary to their fair values at the acquisition date, following a business combination?

• A) When reporting under ASPE and there is a significant non-controlling interest.
• B) When reporting under ASPE and there is an insignificant (or no) non-controlling interest.
• C) When reporting under IFRS and there is a significant non-controlling interest.
• D)When reporting under IFRS and there is an insignificant (or no) non-controlling interest.

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Definitions:

Inflating

The act of filling something with air or gas to make it expand.

Tiny Balloon

A reference that could apply to a miniature balloon possibly used in medical contexts, such as in balloon angioplasty to open up blocked or narrowed blood vessels.

Ventricles

Lower chambers of the heart or cavities in the brain that produce and contain cerebrospinal fluid.

Bluish Or Gray Color

A physical sign indicating potential oxygen deprivation or circulatory issues, often observed in the skin or mucous membranes.