IAS 28Chapter 7Lesson 1
Ending the equity method: loss of influence, partial disposal, change of status
Step 1 of 7Learning objectives
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When the investor loses significant influence, it stops the equity method, measures the retained interest at fair value and recognises the gain or loss in profit or loss; a partial disposal with influence retained reclassifies a proportion of other comprehensive income.
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Learning objectives
- Explain the end of the equity method at the date of loss of significant influence and the fair value of the retained interest.
- Calculate the gain or loss on the loss of influence and record it.
- Place the associate / joint venture switch, the partial disposal with influence retained and the case of an associate that becomes a subsidiary.