BCZ168 The Board decided that after control of an entity is obtained, changes in a parent's ownership interest that do not result in a loss of control are accounted for as equity transactions (ie transactions with owners in their capacity as owners). This means that no gain or loss from these changes should be recognised in profit or loss. It also means that no change in the carrying amounts of the subsidiary's assets (including goodwill) or liabilities should be recognised as a result of such transactions.

BCZ169 The Board reached this conclusion because it believed that the approach adopted in the amendments was consistent with its previous decision that non‑controlling interests are a separate component of equity (see paragraphs BCZ156–BCZ159).

BCZ170 Some respondents agreed that non‑controlling interests are equity but said that they should be treated as a special class of equity. Others disagreed with the requirement because in their view recognising transactions with non‑controlling interests as equity transactions would mean that the Board had adopted an entity approach whereas they preferred a proprietary approach. The Board disagreed with this characterisation of the accounting treatment, noting that the accounting proposed was a consequence of classifying non‑controlling interests as equity. The Board did not consider comprehensively the entity and proprietary approaches as part of the amendments to IAS 27 in 2008.