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CS Executive · Corporate Accounting and Financial Management · Consolidation of Accounts

Under Ind AS 110, where is the gain or loss on loss of control of a subsidiary recognised, in terms of whom it is attributable to?

The gain or loss associated with loss of control is recognised as attributable to the former controlling interest. Ind AS 110 requires the parent to recognise this gain or loss along with derecognising the subsidiary's assets and liabilities and recognising any retained investment at fair value.

  1. AIt is attributable to the former controlling interestCorrect
  2. BIt is attributable to non-controlling interests only
  3. CIt is deferred and amortised over the remaining life of the retained investment
  4. DIt is attributable to all shareholders equally, including the former non-controlling interests

Explanation

Ind AS 110 states that the parent recognises the gain or loss associated with the loss of control attributable to the former controlling interest. It is not deferred, and it is not attributed to non-controlling interests.

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