CERTYNEX IFRS ACADEMY

Orme SA holds 80% of Pin SA. It sells 10 percentage points to third parties (70% afterwards) for 90,000 in cash and keeps control. The amount by which the non-controlling interests increase is 70,000 (case data). How is the difference between 90,000 and 70,000 accounted for?

In consolidated profit or loss, as a gain of 20,000, the sale being made at a price above carrying amount.

Directly in equity, attributed to the owners of the parent, with no profit or loss and no additional goodwill.

As additional goodwill of 20,000, the sale having brought new holders into Pin's capital.

In other comprehensive income, then in profit or loss at the next reporting date, by reclassifying the amount of 20,000.