BC36 During its redeliberation of the exposure draft ED 9 Joint Arrangements, the Board reconsidered whether its decision in the second phase of the business combinations project to characterise loss of joint control or loss of significant influence as a significant economic event (ie in the same way that loss of control is characterised as a significant economic event) was appropriate. If it were, the Board thought that the entity should be required to recalibrate the accounting as required by IFRS 10 Consolidated Financial Statements. However, the Board concluded that, although significant, the events are fundamentally different. In the case of loss of control, the cessation of the parent‑subsidiary relationship results in the derecognition of assets and liabilities because the composition of the group changes. If joint control or significant influence is lost the composition of the group is unaffected.
BC37 The Board also noted that retaining the characterisation of significant ec
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