CICPA Comprehensive

Practice session

Company A held a 20% equity interest in Company B, classified as an equity investment at fair value through other comprehensive income (FVOCI) under CAS 22, with a carrying amount of RMB 30 million (initial cost RMB 24 million, accumulated fair value gain in OCI of RMB 6 million). On July 1, 2025, Company A acquired an additional 40% voting interest in Company B from an unrelated third party for RMB 70 million in cash, achieving control in a business combination not under common control. On that date, the fair value of the original 20% interest was RMB 35 million, and Company B's identifiable net assets had a book value of RMB 140 million and a fair value of RMB 150 million. In Company A's consolidated financial statements, what is the amount of goodwill recognized, and how should the accumulated OCI of RMB 6 million be treated?

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