When a parent loses control of a subsidiary and a noncontrolling interest is retained, the parent should measure that retained interest at fair value when control is lost and recognize a gain or loss in profit or loss. (True)

Question

Quizplus · Accepted Answer

When a parent loses control of a subsidiary but retains a noncontrolling interest, the parent must remeasure the retained interest at its fair value at the date control is lost, recognizing any resulting gain or loss in the profit or loss statement. This accounting treatment is in accordance with International Financial Reporting Standards (IFRS) and generally accepted accounting principles (GAAP).

When a Parent Loses Control of a Subsidiary and a Noncontrolling