DO1 Mr Kabureck, Ms Lloyd and Mr Ochi voted against the publication of Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28). The reasons for their dissents are set out below.

Dissent of Mr Kabureck

DO2 Mr Kabureck dissents from the amendments to IFRS 10 and IAS 28, which require full gain or loss recognition in the accounting for the loss of control when a parent (investor) sells or contributes a business, as defined in IFRS 3 Business Combinations, to an investee (ie an associate or a joint venture) that is accounted for using the equity method.

DO3 He agrees that the control of a business can be lost regardless of whether the acquirer is a related or an unrelated party. However, he believes that the accounting for the gain or loss should be different if the sale or contribution is to an investee that is accounted for using the equity method. He observes that the investor’s interest in the gain or loss will eventually affect the future investee’s profit or loss recognised in the investor’s profit or loss.

DO4 His concern can be illustrated by a simple example: