Disposal of a group interest
Determine whether control is retained or lost. A parent’s ownership change in a subsidiary while control continues is an equity transaction; loss of control triggers derecognition of the subsidiary’s assets and liabilities and measurement of any retained investment under IFRS 10. An interest in an associate or joint venture may follow different rules.
Worked example
A parent sells 10% of a subsidiary but retains control. The group adjusts non-controlling interest and parent equity, without recognising a disposal gain in group profit or loss.
Common mistake
Applying the full-disposal gain calculation to every ownership reduction or assuming a share sale always causes loss of control.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |