CERTYNEX IFRS ACADEMY

Orme SA sells part of its holding in Pin SA and loses control; it keeps a 30% interest that gives it significant influence, whose fair value at the date of loss of control is 450,000 (case data). How does it account for the retained interest?

It continues to consolidate Pin line by line to the extent of 30%, by proportionate consolidation of the former subsidiary.

It recognises it at fair value, 450,000, which becomes the cost of an associate subsequently accounted for under the equity method.

It keeps it at its share of Pin's consolidated carrying amount, the equity method starting from that value.

It recognises it at fair value, then accounts for it under IFRS 9 as a financial asset, significant influence not changing its classification.