Orme SA sells 70% of Pin SA and loses control; it keeps an interest. It receives 1,000,000 in cash, and the fair value of the retained interest is 250,000. In the consolidated accounts, Pin's assets (excluding goodwill) stand at 1,500,000, its goodwill at 200,000, its liabilities at 600,000 and the non-controlling interests at 180,000. Case convention: no other accumulated other comprehensive income. Record the loss-of-control entry.
- Consideration received in cash
- 1,000,000
- Fair value of the retained interest
- 250,000
- Carrying amount of the non-controlling interests
- 180,000
- Assets of the subsidiary excluding goodwill
- 1,500,000
- Goodwill of the subsidiary
- 200,000
- Liabilities of the subsidiary
- 600,000