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13.15 Remeasurement of previously held equity interest
Publication date: 28 Feb 2022
us IFRS & US GAAP guide
Differences exist between US GAAP and IFRS related to the recognition of any difference between the fair value and the carrying value of the previously held equity interest. Under US GAAP, the acquirer remeasures the previously held equity interest to fair value and recognizes any difference between the fair value and carrying value, if any, as a gain or loss in income. Under IFRS, the acquirer remeasures the previously held equity to fair value at the acquisition date, and a gain or loss is recognized in profit or loss, or other comprehensive income, as appropriate.
US GAAP | IFRS |
The acquirer’s previously held equity interest is remeasured to fair value at the date the controlling interest is acquired. Any difference in the previously held equity interest is recognized as a gain or loss in the income statement in accordance with ASC 805-10-25-10.
| The acquirer’s previously held equity interest is remeasured to fair value at the acquisition date, and a gain or loss is recognized in profit or loss, or other comprehensive income, as appropriate (depending on whether the previously held equity interest was measured at fair value through profit or loss or fair value through other comprehensive income).
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