CERTYNEX IFRS ACADEMY

Orme SA sells 40 points of its holding in Pin SA on 15 December, then a further 25 points on 15 March, under a single agreement signed on 15 December with the same buyer. Case assumption: the two sales are negotiated together, make economic sense only together, and the second depends on the first. What must Orme assess?

Each sale separately: the first, which leaves control, is an equity transaction, and the second gives rise to a loss-of-control result measured at the date of the second sale.

Nothing before the second sale, no treatment being provided for until control is actually lost on 15 March.

Whether the arrangements must be accounted for as a single transaction in view of their terms, their joint economic effect and their interdependence; here, they must.

Each sale separately, in profit or loss as it occurs, since the two sales together lead to the loss of control.