January 1, 2017 ABC Holding invested USD 100 in XYZ Subsidiary Net Assets which amounted to USD 100 at date of acquisition / Investment enjoying a full control of the Subsidiary that will be consolidated thereafter.
Ending of year 2017 XYZ had occurred losses of USD 150 turning the Equity to show in Negative of USD 50.
Is the accounting entry pertaining to the recognition of 2017 full losses correct or not ?! I need to have IFRS supporting Close which supports forming a liability / Provision account against the losses of Subsidiaries which i am fully entitled with
Date of Investment
100 DR. Investment in Subsidiary XYZ
100 CR. Cash
Year end Entry
150 DR. Share of Subsidiary XYZ Losses
100 CR. Investment in Subsidiary XYZ
50 CR. Holding Liability to support the Subsidiary XYZ (Accrual / Provision)