Cumulative preference shares held by non-controlling interests

Learning objectives

• Calculate the parent's share of profit or loss after adjusting for the dividends on cumulative preference shares held by third parties.L3

Normative references

• IFRS 10 §B95If a subsidiary has outstanding cumulative preference shares classified as equity and held by non-controlling interests, the parent's share of profit or loss is computed after adjusting for the dividends on those shares, whether or not they have been declared.

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

1 question

• Hêtre SA, a subsidiary of the Orme group, reports a profit of {subsidiary_profit}. It has issued cumulative preference shares, classified as equity and held by third parties; their cumulative dividend for the year is {preference_dividends}, whether or not declared (case data). Calculate the profit of Hêtre attributable to the other holders, on which the parent's share of profit is calculated.L3