18.2 Consolidated statement of financial position
　　a. Eliminate cost of investment
　　b. Goodwill and fair value
　　c. Pre-acquisition and Post-acquisition reserves
　　d. Non-controlling interest /Minority interest
　　e. Intra-group balance
　　f. Unrealized profit
　　a. Eliminate cost of investment
　　Acquisition of subsidiaries and businesses are accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree. Acquisition-related costs are recognized in profit of loss as incurred.
　　It is necessary to eliminate the cost of the acquisition in H’s books against the shareholder’s equity in S’s books. The elimination will avoid double counting when all the assets are liabilities of H and S are added together.
　　Holding Co. Subsidiary Co Group
　　In acquiring a subsidiary, H may be willing to pay apremium for the benefits arising from the business combination, or for the earning potential of the subsidiary. It is recognized an intangible asset at the date that the control is acquired (the acquisition date). Goodwill is not amortized, but is reviewed for impairment at least annually. Any impairment loss is recognized immediately in profit or loss/ income statement and is not subsequently reversed.
　　Goodwill is measured as the excess of the sum of theconsideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer's previously- held equity interest (if any) in the entity over the net fair value of the identifiable net assets recognized.