Loss of control and retained interest

Learning objectives

• Analyse the presentation of a subsidiary whose loss of control leaves a retained interest.L4

Normative references

• IFRS 5 §36ASale plan involving loss of control of a subsidiary: the disclosures in paras 33 to 36 are provided when the subsidiary is a disposal group that meets the definition of a discontinued operation (para. 32).

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

1 question

• Parent company Valtour commits to a plan to sell 70% of a subsidiary that on its own represents a separate major line of business; it will keep 30% without control. The classification criteria are met. Which conclusion is consistent with IFRS 5?L4