Module 29: Consolidation - Changes in Ownership Flashcards
1
Q
IFRS 3 does not apply until
A
Control is achieved
2
Q
Once control is achieved (2)
A
- carrying amount of previously held shareholding is remeasured to the FV with any gain or loss recognised
- goodwill is calculated including the fair value of the previously held shareholding
3
Q
Decrease in controlling shareholding double entry
A
DR Bank
CR SFP - NCI
CR Retained earnings
Debit retained earnings if non controlling adjustment is greater than proceeds
4
Q
Full disposal double entry
A
DR Bank DR SFP - NCI CR Goodwill (carrying amount) CR Net assets CR SPL - gain on disposal (DR if a loss)
5
Q
When subsidiary is disposed of such that control is lost
A
May require disclosure as a discontinued operation
6
Q
Gain/ loss on disposal
A
Proceeds
Less CA goodwill
Less % of net assets disposed of
