CERTYNEX IFRS ACADEMY

Alpha SA is a subsidiary of Lotus Group. Seen from its own separate financial statements, Alpha's non-controlling interests appear significant; set against Lotus's consolidated financial statements, they are small (case facts). From which viewpoint is materiality assessed, in light of the Interpretations Committee's 2015 decision?

From the viewpoint of Alpha's separate financial statements, since these are what show the significance of the non-controlling interests, as it appears from its own accounts.

From the viewpoint of the entity's consolidated financial statements; the choice to present information by subsidiary or by sub-group is a judgement made according to the objective in paragraph 10.

From the viewpoint of Alpha's main minority shareholder, whose assessment of significance prevails over that of group management.

At group management's choice, independently of the consolidated statements, the standard leaving the viewpoint free for assessing materiality.