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Question - Parent acquired 60% the shares of Subsidiary for $1000. On 1 Jul 2017. If the acquisition date was 1 Jul 2017, the subsidiary has a patent that is not recorded on fair value,
In 01 Jul 2017
Share Capital 100
General Reserve 200
Retained Earnings 300
In Subsidiary book, the patent was recorded at $10,000; the fail value is 12,000, and patent is assessed as indefinite useful life.
Consolidation Date: 30 June 2020.
In June 2020, if the patent was fully impaired and not on hand any more, what changes will need to be made to the NCI journal entries.
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