CERTYNEX IFRS ACADEMY

Tavel loses control of a foreign subsidiary, control being assessed under IFRS 10. How does IAS 21 interact with this loss of control?

IAS 21 is not concerned by this transaction, the loss of control being dealt with by IFRS 10 and its own requirements.

The loss of control is a disposal, and the share of non-controlling interests is also reclassified to profit or loss with the rest.

The cumulative translation differences stay in equity as long as the interest retained in the former subsidiary is not sold.

The loss of control is a disposal; the share of non-controlling interests is derecognised, without reclassification.