Advanced
Step Acquisition (Equity to Control)
Moving an investment from 'Associate' (20%) to 'Subsidiary' (60%) after buying more shares.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment in Subsidiary | Asset (+) | 60,000.00 | - |
| Investment in Associate (Original 20%) | Asset (-) | - | 20,000.00 |
| Cash (New 40% Purchase) | Asset (-) | - | 40,000.00 |
💡 Accountant's Note
Under IFRS 3, when you gain control, you re-measure your previous stake at fair value and combine it with the new purchase to record the total investment in the subsidiary.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.