Partial disposal of an investment in a subsidiary, it depends on whether control retained or lost
If control is retained, this is accounted for as an equity transaction with owners and cannot recognized gain or loss.
If the control is loss, the residual investments should be remeasured to fair value. Any difference between fair value and carrying amount is a gain or loss on this disposal.
This is factored into the calculation of gain or loss on disposal
Fair Value of the proceeds from the transaction that resulted in the loss of control
+ Fair value of any retained non-controlling equity investment in the former subsidiary at the date of control is lost
+ Carrying Value of the non-controlling interest in the former subsidiary (including accumulated OCI attributable to it) at the date control is lost
- Carrying Value of the former subsidiary’s net assets at the control is lost
+/- Any amounts included in OCI of equity that related to the subsidiary, that would required to be reclassified to profit or loss or another component of equity if the parent had disposed of the related assets and liabilities
Cash flow Statement
The company should present separately within investing activities the aggregate cash flow arising from disposals of subsidiary and should disclose
a. the total purchase or disposal consideration;
b. the portion of the purchase or disposal consideration discharged by means of cash and cash equivalents;
c. the amount of cash and cash equivalents in the subsidiary acquired or disposed of;
d. the amount of assets and liabilities other than cash and cash equivalents in the subsidiary acquired or disposed of, summarized by each major category.
> whethercontrol retained or lost