Loss of control of a subsidiary

Learning objectives

• Analyse the classification of the assets and liabilities of a subsidiary whose sale involves loss of control, including when the entity retains an interest.L3, L4

Normative references

• IFRS 5 §8ASale plan involving loss of control of a subsidiary: all the assets and liabilities of the subsidiary are classified as held for sale when the criteria in paras 6-8 are met, even if a non-controlling interest is retained.

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

1 question

• A parent commits to a plan to sell 60% of its subsidiary, which would make it lose control while keeping an interest. The classification criteria are met. What does it classify as held for sale?L3