Link with IFRS 10

Learning objectives

• Identify the link with IFRS 10 (loss of control, non-controlling interests).L3

Normative references

• IAS 21 §48AIn addition to the disposal of an entity's entire interest, the following are accounted for as disposals: (a) a partial disposal involving the loss of control of a subsidiary that includes a foreign operation, regardless of whether the entity retains a non-controlling interest; (b) a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation, when the retained interest is a financial asset that includes a foreign operation.
• IAS 21 §48BOn the disposal of a subsidiary, the exchange differences attributed to non-controlling interests are derecognised but are not reclassified to profit or loss.

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

1 question

• Tavel loses control of a foreign subsidiary, control being assessed under IFRS 10. How does IAS 21 interact with this loss of control?L3