Investment entities under IFRS 10 shall measure an investment in a subsidiary at fair value through profit or loss in accordance with IFRS 9
conditions are applicable.
Actually IFRS 10 redefines the definition of control. Basically no impact on recognition of accounting treatment.
Under IFRS 3 which relates to business combination, ABC company as a parent acquire shares of the XYZ company. Acquiree company (XYZ) will be a subsidiary of the ABC company. At the time of acquisition of shares consideration (purchase price) is transferred to XYZ company. Subsequently all assets and liabilities of the XYZ measured at acquisition-date fair value. ABC company will make adjustments in books of account to reflect fair value and goodwill.
