Page 6 - PowerPoint Presentation

CHANGES IN DEGREE OF CONTROL

Outcomes

• Identify and account for loss of control, significant influence

and joint control in the consolidated financial statements as a
result of changes in degree of control arising from:

• additional shares issued by the investee
• rights issue

• share buy-back

• contractual arrangements

• Account for changes in ownership interest as result of
transactions between owners that do not result in loss of

control, significant influence and joint control in the

consolidated financial statements.

• Account for the effect of the changes in interest in the

separate financial statements of the investor.

• Apply consolidation procedures and prepare a set of
consolidated financial statements.

• Identify and account for subsidiaries and associates classified
as held for sale in the consolidated financial statements.

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