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The IFRS Interpretations Committee finalised its agenda decision on step acquisitions of investments in a subsidiary accounted for at cost.
In January 2019, the IFRS Interpretations Committee (the Committee) finalised its agenda decision on how an entity applies the requirement in IAS 27 Separate FinancialStatements to an investment in a subsidiary accounted for at cost when a subsidiary is acquired in stages (step acquisition).
The Committee concluded that an entity would account for the cost of the investment in the subsidiary as either the sum of the fair value of the initial interest at the date of obtaining control of the subsidiary, plus any consideration paid for the additional interest (fair value as deemed cost approach), or the sum of the consideration paid for the initial interest, plus any consideration paid for the additional interest (accumulated cost approach).