CERTYNEX IFRS ACADEMY

A colleague attributes Pin SA's profit for the year to the non-controlling interests at the percentage third parties held at the acquisition date, i.e. 20%. Since a disposal by the parent before the start of the year, third parties hold 30% of Pin. What is the error?

It should have attributed all the profit to the owners of the parent, third parties being entitled to the dividends they receive.

It uses the acquisition-date percentage whereas profit is attributed according to present ownership interests, i.e. 30%.

It should have used the average of the acquisition-date and present percentages, i.e. 25%, to smooth the effect of the disposal.

It is right: the acquisition-date percentage remains applicable as long as the parent keeps control of Pin.