Link with IFRS 10

Learning objectives

• Explain that, on loss of control, the fair value of the retained interest is the cost of an equity-accounted associate.L4

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

1 question

• Alba SA loses control of Delta SA but retains 30%, which gives it significant influence. The fair value of the retained interest is 1,500,000; Alba's share of the net fair value of Delta's identifiable assets and liabilities is 1,300,000 (case data). What is the cost of the equity-accounted interest and how is the difference from the share treated?L4