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Question · Loss of significant influence

Alba SA sells part of its interest in Brise SA, which makes it lose significant influence. It receives 500,000 in cash; the retained interest is a financial asset with a fair value of 300,000, and the carrying amount of the investment is 650,000 (case data). Case convention: no amount of other comprehensive income is to be reclassified. Record the entry for the loss of significant influence.

Consideration received
500,000
Fair value of the retained interest
300,000
Carrying amount of the investment
650,000
Your answer
  1. Line 1

    Account Cash

  2. Line 2

    Account Retained interest at fair value

  3. Line 3

    Account Investment in associate

  4. Line 4

    Account Gain on loss of significant influence

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