Buy a property SPV mid-year

1Decide whether you bought a business

On 1 July 2026, Your Group buys 100% of Marina SPV for 5,000,000. Its only asset is a let office building. The group’s financial year runs January to December.

Buying the shares of an SPV is not always a business combination. IFRS 3 lets you apply a concentration test: if substantially all of the fair value of the gross assets bought is in one building, or a group of similar buildings, what you bought is not a business, and the purchase is an asset acquisition. If not, assess whether the SPV comes with processes, such as its own leasing and management staff.

2Bring in the SPV’s figures

Add Marina SPV to your hierarchy, load its months and map its accounts, as in steps 2 to 4 of Buy a new subsidiary. Load every month from January: its profit for January to June is taken out of the group’s figures as earned before the purchase, and a missing month makes the fair value adjustment wrong.

At 30 June, Marina SPV’s books show share capital of 4,000,000, retained earnings brought forward of 150,000 and profit for January to June of 150,000: equity of 4,300,000. The building is carried at 4,600,000; the valuer puts it at 5,300,000.

3Record the purchase

1. Open Ownership & Equity → Ownership, and click Marina SPV in Group structure.
2. Click + Record, and choose Bought shares.
3. Choose Your Group as Parent entity, Jul-2026 as the Month, 100 in % transacted, and Subsidiary.
4. Enter the Investment cost (group currency) and the Net assets at date (fair value) for your route, below, and click Add Record.

BrizoConsol has no separate setting for an asset acquisition. Entering the cost as the net assets makes the goodwill nil, and puts the whole difference between the cost and the SPV’s book equity on the FV Adjustment account, ready to allocate in step 5.

The note under the amounts reads This purchase establishes control, so it is the acquisition. The record shows Bought 100% and control gained.

4Choose the accounts

1. Open Totals and accounts for this company. Choose Investment in subsidiary - Marina SPV, the account Your Group’s books hold the cost in, and, for a business combination, Goodwill - Marina SPV. Click Save.
2. Click Choose accounts in the banner, choose FV Adjustment and any other account listed, and click Save.

Saving recalculates the group and posts the acquisition, dated July. It eliminates Marina SPV’s equity of 4,150,000 and its January to June profit of 150,000 against the investment, and posts the rest of the investment to FV Adjustment: 700,000 for the asset acquisition, or 581,000 and goodwill of 119,000 for the business combination. The entry is explained line by line in Read the acquisition entries line by line.

5Allocate the uplift to the building

FV Adjustment is one account for the whole group. Move the uplift onto the building, and the deferred tax onto its own line, with a GAAP journal.

1. Select Your Group, open Adjustments → GAAP Journals, and click + Add a new journal entry.
2. Enter the Journal ID PPA-MARINA-2026-07, the date 31 July 2026, the Journal Type Investment Property, and a Description.
3. Enter the lines for your route, and click Confirm.

If the group measures investment property at fair value, the building is then carried at its valuation from July, as in Measure investment property at group level. Under the cost model, depreciate the uplift each month.

GAAP Journals is in the menu once an accounting standard is enabled for the group. Without one, post the same lines on Adjustments → Consolidation Journals with the type Acquisition.

6Check the result

1. On Ownership, look at the record for Marina SPV.
2. Open Reports → Balance Sheet for Jun-2026 and Jul-2026 with Show Entities on.
3. Open Reports → Profit & Loss for Jul-2026, year to date.

7If something goes wrong