Previously held interests

Learning objectives

• Distinguish obtaining joint control (previously held interests not remeasured) from obtaining control (remeasurement under IFRS 3).L3, L4

Normative references

• IFRS 11 §B33CAWhen a party that participates in a joint operation without having joint control obtains joint control of a joint operation whose activity constitutes a business as defined in IFRS 3, previously held interests are not remeasured (Annual Improvements 2015-2017, December 2017, applicable to transactions on or after the beginning of the first annual period beginning on or after 1 January 2019, C1AB). Conversely, obtaining control of such a joint operation is a business combination achieved in stages, with remeasurement of the previously held interest (IFRS 3, para. 42A).

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

1 question

• A party without joint control of a joint operation that is a business subsequently obtains joint control of that operation. What happens to the interest it previously held?L3