Question: If a parent entity acquires a controlling interest in a subsidiary, and the subsidiarys assets are not measured at fair value, there is a requirement

If a parent entity acquires a controlling interest in a subsidiary, and the subsidiary’s assets are not measured at fair value, there is a requirement to make an adjusting entry to record the assets at fair value. Why do we need to do this adjusting entry? What would be the implications if we do not do the adjusting entry?

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