[This heading and paragraphs BC33 and BC34 were added as a consequence of amendments to IAS 27 Consolidated and Separate Financial Statements made as part of the second phase of the business combinations project in 2008. The consolidation requirements in IAS 27 were superseded by IFRS 10 Consolidated Financial Statements issued in May 2011. The accounting requirements did not change.]

BC33 In the second phase of the business combinations project the Board decided that the loss of control, significant influence or joint control of an entity is accounted for as a disposal for the purposes of IAS 21. Accordingly, a former parent accounts for the loss of control over a subsidiary as a disposal of the subsidiary, even if the former subsidiary becomes an associate or jointly controlled entity ['Jointly controlled entities' were defined in IAS 31 Interests in Joint Ventures. IFRS 11 Joint Arrangements, issued in May 2011, replaced IAS 31 and changed the terminology.] of the former parent. Similarly an investor accounts for the loss of significant influence over an associate or the loss of joint control over a jointly controlled entity as a disposal. The Board decided that the change in the nature of the investment is a significant economic event.

BC34 The Board also decided in the second phase of the business combinations project that:

(a) changes in the parent's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions (ie transactions with owners in their capacity as owners);