Changes in Ownership (step purchase, disposal, loss of control, preferred, indirect)

A parent that already controls a subsidiary buys more of its shares from NCI. Is this a new business combination, and does goodwill get touched?

On a step purchase that achieves control, the parent already held a 30% equity-method interest in the acquiree. What does it do with that prior interest, and where does the effect land?

Before control, a stake later stepped up to control may sit under two measurement bases. Which two, and why does it matter which one applied when you remeasure at the step-up?

A parent changes its ownership in a subsidiary. What single fact decides whether the change is an equity transaction or generates a gain/loss in net income?

A parent sells part of its subsidiary shares but keeps control. It receives proceeds above the book value of the interest given up. Where does the excess go?

When allocating a subsidiary's net income, in what order do preferred dividends and the parent/NCI split happen, and who gets the preferred claim?

Parent owns 80% of Sub; Sub owns 70% of SubSub. Does Parent control SubSub, and what is Parent's effective ownership in SubSub for the NCI calculation?

A subsidiary issues new shares to the public, diluting the parent's percentage but not costing the parent control. How is the change in the parent's share of the subsidiary's equity reported?

A parent sells enough subsidiary shares to lose control but keeps a residual stake. Beyond the gain on the shares sold, what must it do with the retained interest?

When the parent's ownership decreases but control is retained, what happens to the undepleted acquisition differential, and why is nothing expensed?

An investor's FVTPL stake grows into significant influence without any business combination. Does it go back and restate prior periods, and what becomes its cost base under the equity method?

An associate had accumulated OCI (say, from a cash-flow hedge). What happens to that OCI when the investor loses significant influence versus merely trims its stake?

A subsidiary's capital structure has two share classes (e.g. subordinate voting and multiple voting shares) with different voting and dividend rights. Do the core consolidation mechanics change?

List the events that can shift a parent's ownership percentage in a subsidiary, and the default way each direction is classified.

A company buys a 10% block that gives neither control nor significant influence. How is that first block carried, and what happens to any acquisition differential?

An investor already on the equity method buys another block but still only has significant influence. Does it recompute one overall acquisition differential, or something else?

A parent accumulated a large stake through dozens of small open-market purchases over a short period rather than one clean block. Must each purchase be analyzed separately?

A parent kept its own books on the cost method through a series of step acquisitions. What extra work does that force when preparing consolidated statements?

A subsidiary issues new shares to outsiders, diluting the parent but not costing it control. Mechanically, how is the dilution modeled, and what drives whether the parent shows a net charge or credit to equity?

A subsidiary has preferred shares outstanding. Before computing the common-share acquisition differential and NCI, what must you do to its equity, and how much equity is assigned to the preferred?

You are allocating a subsidiary's net income when it has cumulative preferred shares but declared no dividend this year. Does the preferred class still take a slice?

A parent loses control of a subsidiary through a transaction with an associate or joint venture whose assets do not constitute a business. Is the full gain or loss recognized in profit or loss?

An investor drops from significant influence to a small passive stake but still holds some shares. How is the gain or loss on that transition measured?

A parent buys some of its subsidiary's preferred shares at a price differing from their carrying amount. How is that acquisition differential treated, and why is none of it pushed to goodwill?

A parent achieves control through a mix of direct and indirect holdings (e.g. it owns Subone, and Subone owns part of Subtwo). What is the key to consolidating, and in what order is income allocated?

Contrast how net income is allocated to noncumulative preferred shares versus participating preferred shares.