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Accounting for invesment in subsidiary

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chaithra shetty

2 Points Posted on 25 September 2022

whether the investment in subsidiary shown at cost be subsequently impaired if there is loss in value as per Ind As ?

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Quick Summary

This discussion clarifies whether investments in subsidiaries, initially recorded at cost, need to be subsequently impaired under Indian Accounting Standards (Ind AS). The consensus is yes, particularly if the carrying amount of the investment exceeds its recoverable amount, similar to how goodwill is impairment tested. This ensures the investment is reported at its true value.