Change in ownership without loss of control
The group continues to recognise all subsidiary assets and liabilities. Adjust the carrying amounts of parent and non-controlling interests to reflect their changed relative interests and recognise the difference between the adjustment to non-controlling interest and consideration in equity attributable to owners of the parent. No gain or loss is recorded in consolidated profit or loss.
Worked example
A parent sells a 10% interest in its subsidiary for $120,000 but retains control. The carrying amount of non-controlling interest increases by $90,000; the $30,000 difference is credited to equity attributable to the parent, not profit or loss.
Common mistake
Treating the sale as a disposal of subsidiary net assets and crediting the $30,000 to group profit.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |