Material non-controlling interests

Learning objectives

• Identify the disclosures required for a subsidiary that has non-controlling interests that are material.L2
• Calculate the profit or loss allocated to non-controlling interests and their accumulated amount at the end of the period from a subsidiary's data.L2, L3
• Justify the level of presentation (subsidiary or subgroup) and the assessment of materiality from a consolidated perspective.L3

Normative references

• IFRS 12 §12For each of its subsidiaries that have non-controlling interests that are material to the reporting entity, the entity discloses: the name of the subsidiary; its principal place of business (and country of incorporation if different); the proportion of ownership interests held by non-controlling interests and, if different, the proportion of voting rights held; the profit or loss allocated to non-controlling interests during the period; their accumulated amount at the end of the period; summarised financial information about the subsidiary (B10).

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

3 questions

• Lune SA controls Saturne SA, a subsidiary whose non-controlling interests, held at {nci_percent}, are material (case data). Saturne's profit: {subsidiary_profit}. Accumulated non-controlling interests at the start: {opening_nci}. Their share of other comprehensive income: {nci_share_of_oci}; dividends paid to them: {dividends_to_nci}. Case convention: no intragroup adjustment. Calculate the profit allocated to non-controlling interests and their closing accumulated balance, two amounts that a subsidiary with material non-controlling interests brings out in the information required by paragraph 12.L2
• Cyrus SA controls Dune SA, which pays {total_dividend_paid} in dividends; {nci_percent} of those dividends go to the non-controlling interests (case data). Case convention: the share going to Cyrus is eliminated on consolidation, and the payment to the non-controlling interests is made in cash on the day of the distribution. Record the consolidation entry for the dividend paid to the non-controlling interests.L2
• Alpha SA is a subsidiary of Lotus Group. Seen from its own separate financial statements, Alpha's non-controlling interests appear significant; set against Lotus's consolidated financial statements, they are small (case facts). From which viewpoint is materiality assessed, in light of the Interpretations Committee's 2015 decision?L3