Orchis SA held 25% of Pivert SA, carried at 1,020,000. At the date it obtains control, the fair value of those 25% is 1,230,000. Case convention: an equity-accounted interest, whose remeasurement falls in profit or loss; no amount is accumulated in other comprehensive income; the entry is made at business combination level. Record the entry remeasuring the previously held interest.
- Fair value of the previous interest
- 1,230,000
- Carrying amount of the previous interest
- 1,020,000