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CHANGES IN DEGREE OF CONTROL

ASSOCIATE/JOINT VENTURE BECOMES AN IFRS 9
INVESTMENT

• From the disposal date and the loss of significant

influence, the investor discontinues the use of the

equity method (IAS 28.22).

• The entity shall recognise in profit or loss any difference
between the fair value of the retained interest plus

consideration received less the carrying amount of the

investment at the date that the equity method is

discontinued [IAS 28.22(b)].

• The investor measures the remaining investment in
terms of IFRS 9 Financial Instruments, at either fair

value through profit or loss or fair value through other

comprehensive income (subject to certain
requirements).

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