CoreIntermediate · Advanced
Attribution of profit to owners and non-controlling interests
Learning objectives
- Calculate the share of profit or loss and of other comprehensive income attributed to the owners of the parent and to non-controlling interests.L2, L3
- Record the attribution to non-controlling interests.L3
Normative references
- IFRS 10 §B94The entity attributes profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests; it also attributes total comprehensive income to them even if this results in the non-controlling interests having a deficit balance. The basis of allocation (existing ownership interests, generally without taking potential voting rights into account) is specified in B89 and B90.
Original summaries of the paragraphs (reference register), never a quotation of the standard.
3 questions
- Pin SA, a subsidiary of the Orme group, reports a profit of {subsidiary_profit} for the year. Third parties hold {nci_pct} of Pin. Case convention: the percentages did not change during the year, and there are no intragroup eliminations or other comprehensive income. Calculate the share of profit attributed to the non-controlling interests.L2
- Saule SA, a subsidiary of the Orme group, reports a profit of {subsidiary_profit}. Third parties hold {nci_pct} of Saule. Case convention: the percentages did not change and the attribution is recorded in the consolidation work. Record the entry that attributes to the non-controlling interests their share of profit.L3
- A colleague attributes Pin SA's profit for the year to the non-controlling interests at the percentage third parties held at the acquisition date, i.e. 20%. Since a disposal by the parent before the start of the year, third parties hold 30% of Pin. What is the error?L2
Practical cases
- Consolidation procedures: harmonisation of policies and dates, intragroup eliminations, unrealised profit, attribution and deficit balance of non-controlling interestsL3
- Change in ownership without loss of control: purchase from third parties and partial sale, difference in equity, silences of the standard on goodwill and other comprehensive incomeL3
- Group file: control, consolidation and non-controlling interests, change in ownership without loss of control and loss of control with a retained interest (IFRS 10)L4
Workpapers
- Consolidation and non-controlling interests: intragroup eliminations, unrealised profit in inventory, uniform policies and dates, attribution of profit and deficit balanceL2, L3, L4
- Change in ownership without loss of control: equity transaction, adjustment of non-controlling interests and silences of the standardL3, L4