CERTYNEX IFRS ACADEMY

Delta SA controls Sigma SA. Sigma breaches a covenant with its bank, which makes exercisable certain rights of the bank that are designed to protect its interests as lender (case data). What must Delta SA do about its control of Sigma?

Reassess nothing, because protective rights are excluded from the requirement to reassess control.

Stop consolidating Sigma immediately, the breach causing loss of control.

Reassess whether it still controls Sigma, the reassessment possibly changing its conclusion or not.

Wait for the next annual reporting date to resume the assessment of control.