Proportionate partial disposal

Learning objectives

• Calculate the proportionate share of the cumulative amount re-attributed or reclassified on a partial disposal.L3, L4

Normative references

• IAS 21 §48CPartial disposal of a subsidiary that includes a foreign operation: the proportionate share of the cumulative exchange differences recognised in other comprehensive income is re-attributed to non-controlling interests; in any other partial disposal of a foreign operation, only the proportionate share of the cumulative amount is reclassified to profit or loss.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The Rochelle group sells {disposed_percentage} of its foreign subsidiary but keeps control. The subsidiary's cumulative translation differences are {cumulative_reserve}. Calculate the proportionate share reattributed to non-controlling interests and the balance that stays in the reserve.L3