In the Situation in Which a Subsidiary Revalues Its Non-Current

Multiple Choice

In the situation in which a subsidiary revalues its non-current assets to fair value in its books as part of being acquired by a parent entity,the accounting treatment is:

A) to treat the revaluation according to AASB 116 Property, Plant and Equipment in the books of the subsidiary entity.
B) to create a revaluation surplus in the consolidated accounts and write it off against the parent entity's investment in the subsidiary.
C) to adjust the investment recorded by the parent entity so that the entry balances in the elimination entry.
D) to write off the adjustment to fair value to the statement of comprehensive income, as determined by AASB 10 Consolidated Financial Statements, which is concerned with the treatment of the revaluation in the books of the controlled entity.