Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

If comapny have 15% of other company shares these shares should evaluate using 1- fair value 2- equity method 3- mix of 1 and 2

user-image
Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/02
Islam Refaat
by Islam Refaat , Director of Finance , SHIFT inc (Sila Development Company Limited)

It should be evaluated using Fair Value, equity for more that20% till50% and more that50% it should be consolidation , less that20% it's cost method and to be evaluated based on the fair value as if it's hold for sale

Balraj Ramandasani
by Balraj Ramandasani , Account Manager , BIN DASMAL GROUP

The Answer is1 i.e Fair Value  of shares 

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

The standard or preferred method of accounting in these kind of cases is 'Fair Value Method'. The changes in value should be recognised as Earnings. 

Shahin Mahmud
by Shahin Mahmud , Accounts Officer , Nasir Group of Industries

It should be evaluated using Fair Value

aziz urrehman
by aziz urrehman , key account executive , alkhair group of companies foam manufacturing

These shares should be reported using equity method .becuase is % is less than20 as well as50%.

More Questions Like This