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.
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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.