CERTYNEX IFRS ACADEMY

Alba SA holds 40% of Brise SA, an associate. Brise sells Alba a batch of goods (upstream transaction). At the reporting date, the net realisable value of the batch is below its cost: the transaction reveals a reduction in value of those assets, for a loss of 100,000 (case data). What part of this loss does Alba recognise under IAS 28?

Its share, i.e. 40,000, because the transaction is upstream.

The loss of 100,000 in full, as for a downstream transaction that reveals an impairment.

The share of Brise's other investors, i.e. 60,000, because that share is the one realised with third parties.

No amount at this stage: the loss is deferred until the batch is resold to a customer outside the group.