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Change in a group structure

2.2 Disposals in consolidated financial statements

If a share sale causes control over a subsidiary to be lost, the accounting
treatment is as follows:

 Consolidate incomes and expenses pro-rated up to the disposal date

 Calculate a profit or loss on disposal

 Account for any remaining shares using the most appropriate accounting
standard (e.g. IFRS 9 Financial Instruments or IAS 28 Investments in
Associates and Joint Ventures).

The profit or loss on disposal is calculated as follows:

$m $m
Proceeds X
Fair value of shares retained X
Less carrying amount of subsidiary:
Goodwill at disposal X
Net assets at disposal X
NCI at disposal (X)
–––––
(X)
–––––
Profit or loss X/(X)
–––––

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