IFRS 3
Step Acquisition Accounting: How to Consolidate When an Associate Becomes a Subsidiary
When a group holds an associate stake and acquires enough additional shares to cross the control threshold, the transaction is…
Redeemable NCI: How to Account for Put Options on Non-Controlling Interests
A non-controlling interest does not always sit quietly in equity. When the minority shareholder holds a contractual right to sell…
Full Goodwill vs Partial Goodwill: How Your NCI Measurement Choice Changes the Balance Sheet, the Impairment Test, and Who Absorbs the Loss
Helena is the group controller of Pinnacle Group, which has just acquired a 75% stake in Novum Ltd. The purchase…
NCI at Acquisition: How to Calculate Non-Controlling Interest on the Date of Purchase
When HoldCo acquires 75% of SubCo, it controls SubCo from the acquisition date and must consolidate SubCo’s full balance sheet…
Step Acquisition in a Construction Group: The Consolidation Accounting When Your Associate Becomes a Subsidiary
Construction groups often hold minority stakes in specialist subcontractors before acquiring control. A main contractor might take a 30% or…
Negative Goodwill: Why the Bargain Purchase Gain Must Hit Your Consolidated P&L — Not Equity, Not Deferred Income
Claire is the group finance director of Atlas Industrial Group. The group has just completed the acquisition of Vantage Precision…
Selling a Retail Chain: Why the Consolidated Disposal Gain Is Not What the Parent’s Books Show
When Vantage Retail Group completed the sale of Forum Apparel — a fashion chain it had owned for three years…
How to Consolidate a Subsidiary After a Change in Ownership
Two years ago the group acquired a 60% stake in a specialist logistics business. It was consolidated from day one,…
Why Your Equity Pickup Is Wrong After Acquiring an Associate: Fair Value Adjustments and Embedded Goodwill
Sarah is group controller at a holding company that completed a 35% acquisition of DesignAssoc Ltd eight months ago. The…
How to Consolidate a New Subsidiary Acquired During the Year
The deal closed on 1 May. The group paid £2.4 million for a 75% stake in a profitable manufacturing business,…