Question: Entity D is a first-time adopter in 20X9. Under IFRS, it is required to consolidate Entity K, a subsidiary that it did not previously consolidate

Entity D is a first-time adopter in 20X9. Under IFRS, it is required to consolidate Entity K, a subsidiary that it did not previously consolidate under other GAAP. Entity K had not yet adopted IFRS. Which of the following options could Entity D use to account for its investment in Entity K in its consolidated financial statements?

Entity D shall measure the assets and liabilities of the subsidiary at the same carrying amounts of Entity K, after adjusting for consolidation.

Entity D shall measure the assets and liabilities of the subsidiary at the fair value of Entity K, after adjusting for consolidation.

Entity D shall measure the assets and liabilities of the subsidiary at the same carrying amounts of Entity K with no adjustment.

Entity D shall adjust the carrying amounts of the subsidiary's assets and liabilities to the amounts that IFRS would require in the subsidiary's statement of financial position.

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