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one of my listed subsidiaries has repurchased its own shares leading to increase in Holding % of the parent company.

What will be the accounting treatment in the books of parent company? Should PPA be done?

asked Jan 28 in IFRS 10 - Consolidated Financial Statements by anonymous

2 Answers

0 votes

Can you elaborate yours question?i am unable to clearly understand what exactly you are want to ask in question.

answered Jan 30 by umarhussainia Level 5 Member (10,570 points)
One of our listed subsidiary companies has repurchased its shares from public (buy-back) and as a result of this buy back, the holding % of parent company has increased by 2%. Want to know about the accounting treatment to be done at the consolidation level? Also which IFRS should I be referring to? Does this increase of 2% should impact Goodwill or will it impact the equity?
0 votes


I would break yours question in 3 parts

  1. At time of consolidation, holding company would combine all assets and liabilities of subsidiary according to new % of holding of shares in subsidiary. Suppose before buy back, %age was 52 and after buy back it becomes 52%, then holding company would use new %age i.e 52%.As the %age of holding is increased, as the result share of NCI would also be decreased by same %age.
  2. If you are asking about standards according to which consolidation is done, then these are IFRS 3, IFRS 10, IFRS 11, IFRS 12 and IAS 28. If you asking about accounting standard which specifically deals the issue ask by you in question, then this is general concept and, as per my knowledge, is not addressed in any standard specifically.
  3. Change in %age of holdings in above case would not effects the Goodwill. Goodwill would only be effected if you have lost control over subsidiary by selling out such number of shares by which control has been lost or by selling out whole shares in subsidiary. The issued/paid up capital will be effected as the buy back shares are required to be deducted from issued/paid up capital and at consolidation level, same procedures would be applicable for calculating group reserves.


answered Jan 31 by umarhussainia Level 5 Member (10,570 points)