Acquiree co is a 90 owned subsidiary of acquirer co the


Acquiree Co is a 90% owned subsidiary of Acquirer Co. The carrying amounts of the non controlling interest and the subsidiary are $1,000 and $10000,000 respectively The subsidiary's fair value is $15,000,000. Acquirer transferred part of its interest to Third Co. on December 31 for $12,000,000 in cash but retained a non controlling interest of 20% of Acquiree's voting interests. The fair value of the retained interest, which gives Acquirer significant influence is $3,000,000. The fair values and carrying amounts are as of December 31.

How must Acquirer account for this transaction?

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Financial Accounting: Acquiree co is a 90 owned subsidiary of acquirer co the
Reference No:- TGS01589363

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