Please enable JavaScript.
Coggle requires JavaScript to display documents.
Group - Coggle Diagram
Group
2. Step Acquisition (W9)
Associate to Subsidiary
Accounting concept
Control obtained
In substance
Acquire subsidiary
Sell associate
Associate remeasured to fair value
Accounting treatment
SOFP
Recognise goodwill & NCI
SOPL
Profit or loss on disposal
Investment to Subsidiary
Accounting concept
Control obtained
In substance
Sell investment
Acquire subsidiary
Accounting treatment
SOFP
Recognise goodwill & NCI
SOPL
Profit or loss on disposal
Investment to Associate
Accounting concept
Significant influence obtained
In substance
Sell investment
Acquire associate
Accounting treatment
SOPL
Equity method at DOA
SOFP
Equity method at year end
Subsidiary to Subsidiary
Accounting concept
Control retained
In substance
Transaction between parent and NCI
No acquisition of subsidiary
Accounting treatment
Adjustment to equity & NCI
1. Basic
Associate
Have significant influence
Financing policy
Operating policy
Accounting treatment
Group SOFP
Investment in associate
Group SOPL
Share of profit & OCI
Between 20% to 50% shareholding
Subsidiary
Have control
Right to receive variable returns
Power
Right to appoint/reassign/remove key management personnel
Right to appoint/remove another entity that directs relevant activities
Voting rights
Ability to use power
Accounting treatment
Group SOFP
Consolidate at year end
Group SOPL
Consolidate from the date of control obtained (pro-rated)
50% shareholding
Investment
No control or significant influence
Accounting treatment
Fair value through profit or loss (IFRS 9)
< 20% of shareholding
3. Disposal (W10)
Subsidiary to Associate
Accounting treatment
SOFP
Investment in associate
Remeasure investment at fair value at date of disposal
Derecognise goodwill & NCI
SOPL
Equity method
Profit or loss on disposal
Accounting concept
In substance
Acquire associate
Sell subsidiary
Control is lost
Subsidiary to Subsidiary
(W12)
Accounting concept
Control retained
In substance
No disposal of subsidiary
Transaction between parent and NCI
Accounting treatment
Adjustment to equity & NCI
Subsidiary to Investment
Accounting treatment
SOPL
Fair value through profit or loss (IFRS 9)
Profit or loss on disposal
SOFP
Investment in equity instruments
Derecognise goodwill & NCI
Accounting concept
Control is lost
In substance
Sell subsidiary
Acquire investment
Full Disposal
Accounting concept
Control/significant influence is lost
Accounting treatment
SOPL
Profit or loss on disposal
SOFP
Derecognise goodwill & NCI
Associate to Investment
Accounting concept
In substance
Sell associate
Acquire investment
Significant influence is lost
Accounting treatment
SOPL
Fair value through profit or loss (IFRS 9)
Profit or loss on disposal
SOFP
Investment in equity instruments
Remeasure investment at fair value at date of disposal