Page 63 - 2018 Finac2 Test 3 Slides - Change In Degree Of Control
P. 63
CHANGES IN DEGREE OF CONTROL
NO CHANGE IN CONTROL – ACQUISITION OF A FURTHER INTEREST IN SUBSIDIARY
• When there is a change in the parent’s ownership
interest in a subsidiary that do not result in a loss of
control (% holding increase or decrease but do not
result in a loss of control) it should be accounted for as
an equity transaction in accordance with IFRS 10.23.
• Equity transactions are transactions with owners of the
subsidiary in their capacity as owners. Non-controlling
interest is classified as equity in accordance with IFRS
10.22 and thus any transaction with NCI where there is
no loss of control should be accounted for as an equity
transaction.
63
