Unrecognised losses and restrictions

Learning objectives

• Calculate the unrecognised share of losses of a joint venture or associate, for the period and cumulatively.L3
• Identify the restrictions on the transfer of funds to be disclosed.L3

Normative references

• IFRS 12 §22The entity also discloses: (a) the nature and extent of any significant restrictions on the ability of joint ventures or associates to transfer funds to it (cash dividends, repayment of loans or advances); (b) when the financial statements used in applying the equity method are as of a different date or for a different period, the date of the end of the reporting period of those financial statements and the reason for using a different date or period; (c) the unrecognised share of losses of a joint venture or associate, both for the period and cumulatively, if it has stopped recognising its share of losses.

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

1 question

• Gaïa SA has stopped recognising its share of the losses of the joint venture Hélios, because its interest has been reduced to zero (case data). Unrecognised share of losses, cumulative at the start: {cumulative_unrecognised_opening}. Unrecognised share for the period: {unrecognised_share_for_period}. Calculate the cumulative unrecognised share to disclose at the end of the period.L3