Quartz SA obtains control of Argile SA, in which it held an interest carried at 900,000. At the acquisition date, the fair value of that interest is 1,100,000. Case convention: a cumulative gain of 70,000 is recorded in other comprehensive income in respect of this interest and would be reclassified to profit or loss on a direct disposal; the remeasurement of the interest falls in profit or loss. Calculate the total gain recognised in profit or loss at the acquisition date.
- Fair value of the previous interest
- 1,100,000
- Carrying amount of the previous interest
- 900,000
- Cumulative gain in other comprehensive income
- 70,000