Discuss the Reasons Why the Fair Value of a Subsidiary's

question 12

Essay

Discuss the reasons why the fair value of a subsidiary's net assets may not be equal to their carrying amount.

---

Definitions:

Degree of Control

The extent to which an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.

Resources Required

The necessary materials, funds, personnel, and other assets needed to carry out a project, initiative, or operation.

Environmental Performance

An evaluation of how well an organization or activity is managing its impact on the environment.

Disclosure of Corporations

Disclosure of corporations involves the act of making financial, operational, and governance-related information available to the public and regulatory bodies to ensure transparency and accountability.