CERTYNEX IFRS ACADEMY

A colleague writes: "On loss of control of a subsidiary, IFRS 12 asks only for the total gain or loss on the disposal to be disclosed; the portion arising from remeasuring the retained investment and the line item in profit or loss that includes it need not be specified." What is the error?

It omits that the entity also discloses the portion of the gain or loss attributable to remeasuring the retained investment to fair value, and the line item in profit or loss that includes it.

It confuses the disclosure with the calculation of the gain, which IFRS 12 describes in detail in place of IFRS 10, of which it is the source standard.

It forgets that IFRS 12 asks for the gain or loss of the previous period, the current period being covered by IFRS 10.

It overlooks that the remeasurement of the retained investment is presented in equity, so that there is no line item in profit or loss to specify.