Alba SA acquires 30 % of Cime SA, an associate, for 900,000 in cash. At the acquisition date, the fair value of Cime's identifiable net assets is 3,400,000. Record the acquisition entry, the excess of the share over the cost being recognised as income.
- Cost of the investment
- 900,000
- Investor's percentage
- 30 %
- Fair value of identifiable net assets
- 3,400,000