CERTYNEX IFRS ACADEMY

For a loss of control, a colleague calculates: consideration received 700,000 − carrying amount of net assets derecognised 650,000 = gain of 50,000. The colleague ignores the fair value of the retained investment, 150,000, and the carrying amount of the non-controlling interests, 90,000. What is the error?

It wrongly includes the goodwill in the net assets derecognised, which should be limited to the subsidiary's identifiable assets and liabilities.

It should have kept the retained investment at carrying amount rather than at fair value, which confirms the gain of 50,000.

It omits the fair value of the retained investment and the carrying amount of the non-controlling interests: the gain is 290,000.

It should have taken the fair value of the retained investment directly to equity, the gain in profit or loss remaining 50,000.