When there is a change in group structure that does not result in a loss of control, certain accounting and consolidation principles must be applied, according to IFRS 10: Consolidated Financial Statements. Here are the key implications:

1. No Gain or Loss Recognized on the Sale or Purchase of Non-controlling Interest (NCI):
   • When a parent company sells part of its ownership in a subsidiary but still retains control, the transaction is treated as an equity transaction. There is no recognition of a gain or loss in the consolidated statement of profit or loss. The parent’s ownership is reduced, and the non-controlling interest is increased, or vice versa if additional shares are purchased.
2. Adjustment to Non-controlling Interest (NCI):
   • The carrying amount of the non-controlling interest (NCI) is adjusted to reflect the new ownership structure. The NCI’s proportionate share in the subsidiary’s equity will either increase or decrease based on the change in shareholding.
3. Equity Adjustment for Parent Company:
   • Any difference between the fair value of the consideration received or paid for the shares and the adjustment in the NCI is recognized directly in equity. This is attributed to the parent company’s equity without affecting the income statement. Essentially, this is an adjustment within the equity section of the consolidated financial statements.
4. No Revaluation of Assets and Liabilities:
   • The subsidiary’s assets and liabilities are not revalued because control is retained. The parent continues to consolidate 100% of the subsidiary’s assets and liabilities in the consolidated statement of financial position.
5. Consolidation Continues as Before:
   • The parent continues to consolidate the subsidiary’s financial results, as there has been no change in control. Only the percentages attributable to the parent and the NCI are updated in the equity section of the consolidated financial statements.