view to resale

Show Summary Details

Quick Reference

The grounds on which a subsidiary undertaking is excluded from the consolidated financial statements of a group, because the group’s interest in the subsidiary is held exclusively with a view to subsequent resale. Financial Reporting Standard 2, Accounting for Subsidiary Undertakings, defines the circumstances appropriate for this exclusion as if a purchaser has been identified or is being sought for a subsidiary and it is reasonably expected that the interest will be disposed of within approximately one year of its date of acquisition. The subsidiary undertaking should not previously have been consolidated in group accounts prepared by the holding company. Where a subsidiary undertaking is excluded on these grounds, it should be recorded in the consolidated financial statements as a current asset at the lower of cost and net realizable value. The relevant International Financial Reporting Standard is IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. See also exclusion of subsidiaries from consolidation. See held-for-sale.

Subjects: Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.