Changes in ownership interests in subsidiaries and other
businesses
The aggregate cash flows arising from obtaining or losing control of
subsidiaries or other businesses shall be presented separately and classified
as investing activities.
An entity shall disclose, in aggregate, in respect of both obtaining and
losing control of subsidiaries or other businesses during the period each of
the following:
(a) the total consideration paid or received;
(b)
the portion of the consideration consisting of cash and cash
equivalents;
(c)
the amount of cash and cash equivalents in the subsidiaries or other
businesses over which control is obtained or lost; and
(d)
the amount of the assets and liabilities other than cash or cash
equivalents in the subsidiaries or other businesses over which
control is obtained or lost, summarised by each major category.
An investment entity, as defined in IFRS 10 Consolidated Financial Statements,
need not apply paragraphs 40(c) or 40(d) to an investment in a subsidiary that
is required to be measured at fair value through profit or loss.
The separate presentation of the cash flow effects of obtaining or losing
control of subsidiaries or other businesses as single line items, together with
the separate disclosure of the amounts of assets and liabilities acquired or
disposed of, helps to distinguish those cash flows from the cash flows arising
from the other operating, investing and financing activities. The cash flow
effects of losing control are not deducted from those of obtaining control.
The aggregate amount of the cash paid or received as consideration for
obtaining or losing control of subsidiaries or other businesses is reported in
the statement of cash flows net of cash and cash equivalents acquired or
disposed of as part of such transactions, events or changes in circumstances.
Cash flows arising from changes in ownership interests in a subsidiary that do
not result in a loss of control shall be classified as cash flows from financing
activities, unless the subsidiary is held by an investment entity, as defined in
IFRS 10, and is required to be measured at fair value through profit or loss.
Changes in ownership interests in a subsidiary that do not result in a loss of
control, such as the subsequent purchase or sale by a parent of a subsidiary’s
equity instruments, are accounted for as equity transactions (see IFRS 10),
unless the subsidiary is held by an investment entity and is required to be
measured at fair value through profit or loss. Accordingly, the resulting cash
flows are classified in the same way as other transactions with owners
described in paragraph 17.
39
40
40A
41
42
42A
42B
IAS 7
A1050 © IFRS Foundation