Tomes, TaniaVenter, Elmar Retief2008-05-192008-05-192005-11Tomes, T & Venter, E 2005, 'Subsidiaries acquired exclusively with a view to resale - a new approach', Accountancy SA, pp. 18-26. [http://www.accountancysa.org.za/]0258-7254http://hdl.handle.net/2263/5354The previous version of AC 132, Consolidated Financial Statements and Accounting for Investments in Subsidiaries, contained an exemption from the consolidation of a subsidiary where control is intended to be temporary because the subsidiary is acquired and held exclusively with a view to its subsequent disposal in the near future. With the release of IFRS 5 (AC 142), Noncurrent Assets Held for Sale and Discontinued Operations, this exemption from consolidation has been eliminated; and the revised IAS 27 (AC 132), Consolidated and Separate Financial Statements, now requires all subsidiaries to be consolidated. The disclosure and individual fair value accounting exemptions provided in IFRS 5 (AC 142) for subsidiaries acquired exclusively with a view to resale should save costs and effort in the consolidation of these subsidiaries. Care should, however, be taken to ensure that compliance is achieved with the IFRS 5 (AC 142) criteria for classifying a disposal group as 'held for sale' on the date of acquisition. Failure to comply with these criteria upon the acquisition of a subsidiary acquired exclusively with a view to resale may well result in unfavorable implications for the group.1576560 bytesapplication/pdfenSouth African Institute of Chartered AccountantsSubsidiariesConsolidated financial statementsAcquisitions and mergersInternational Financial Reporting StandardsIFRS 5IFRS 3International accounting standardsInternational Accounting Standards Committee StatementsIAS 27Subsidiary corporationsAccounting -- StandardsArticle