IFRS 5 — Plan to sell the controlling interest in a subsidiary

Date recorded:

The IFRIC discussed whether it should provide guidance on applying IFRS 5 Non-current Assets Held for Sale and Discontinued Operations when an entity is committed to a plan to sell the controlling interest in a subsidiary. The request considered situations in which the entity retained a non-controlling interest in its former subsidiary, taking the form of either an investment in an associate, an investment in a joint venture or a financial asset.

The IFRIC agreed with the staff analysis that the fundamental trigger for IFRS 5 accounting was the loss of control of the subsidiary through sale. The IFRIC reached a tentative decision that this matter should be addressed by the IASB and should not to added to the IFRIC agenda.

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