Question
A subsidiary entity, Snowflake Ltd, is for sale at a price $ 8 million. There has been some interest from prospective buyers but no sale
A subsidiary entity, Snowflake Ltd, is for sale at a price $ 8 million. There has been some interest from prospective buyers but no sale as yet. One buyer has made an offer of $ 7 million but the directors of the parent company have declined the offer. An accountant firm which was appointed by the parent company has just submitted a report and advice that the fair value of Snowflake Ltd is $ 9.5 million. They have decided not to lower the sale price of Snowflake Ltd at the moment.
Discuss whether the subsidiary can be classified as held for sale.
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