Page 87 - 2018 Finac2 Test 3 Slides - Change In Degree Of Control

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).

87