Associate in entity but subsidiaries at group

Accounting for odd group a'cquisition'

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Hi there,

I have a situation I've not come across before. We have a group where one subsdiary (Sub A) has held 40% in an associate and it has been accounted for under the equity method on consolidation. Now another subsidiary (Sub B) has purchased the remaining 60% of the shares in this associate and therefore this associate is a subsidiary at group level. I am not clear what the position is under FRS 102. Would everything be revalued such that the original investment value in Sub A plus the investment value/consideration in Sub B is assessed against the fair value of net assets in the associate/Sub C with goodwill recognised as this is now the point at which the Group has 'control'? If so, how is the original equity method investment balance from the previous consolidation journalled out ? Thank you so much,

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