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We have a case where the holding company is on talks to sell of a subsidiary company. The sale is subject to regulatory approval as well as shareholder approval of the acquiring company.
As of now the steps required for completing the sale is underway.
Is it required to show this subsidiary's fair value as a held for sale asset and de-consolidate from the holding company's consolidated financials?
My view is that since the transaction is to be approved by the regulatory authority as well as the shareholders, it is not possible to conclude that the sale is highly probable.
I would appreciate your views on this.
Thanks
As of now the steps required for completing the sale is underway.
Is it required to show this subsidiary's fair value as a held for sale asset and de-consolidate from the holding company's consolidated financials?
My view is that since the transaction is to be approved by the regulatory authority as well as the shareholders, it is not possible to conclude that the sale is highly probable.
I would appreciate your views on this.
Thanks