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Step Acquisitions & Partial Disposals.
Handled Correctly.

Record each ownership event by date and type. BrizoConsol applies the right accounting treatment automatically — goodwill on step-up to control, equity adjustments on intra-control changes, and disposal gains where control is lost.

No credit card required

Apex Holdings — OpCo SG Step Acquisition
Ownership History
Associate — 35% held
01 Jan 2022 · Equity method
Equity Method
Step-up to control — 72%
01 Jul 2023 · IFRS 3 acquisition
Control Gained
Additional purchase — 80%
15 Mar 2024 · Equity transaction
No Goodwill Change
Partial disposal — 65%
01 Jan 2025 · Equity transaction
Control Retained
Calculated Automatically
Goodwill (at acquisition) $284,000 Auto
FV gain on previously held interest $47,200 P&L
NCI (current period) 35% Auto
4
Events Tracked
3
Treatment Types
0
Manual Journals

Step transactions are where consolidations break.

Most tools store one ownership percentage per entity. Step acquisitions and partial disposals require different accounting treatments depending on whether control is gained, lost, or maintained — and most platforms don't distinguish between them.

Scenario What most tools do What BrizoConsol does
Step-up from associate to control Treats it as a new acquisition from zero — previously held interest ignored Remeasures the previously held interest at fair value on acquisition date; gain/loss posted to P&L per IFRS 3
Purchase of additional interest while controlling Recalculates goodwill or ignores the transaction entirely Treats as equity transaction — NCI adjusted, no goodwill change, difference goes to equity reserve
Partial disposal retaining control Posts a gain/loss in P&L — incorrect under IFRS 10 Equity transaction only — proceeds vs. NCI adjustment flows to equity; no P&L entry
Disposal losing control No derecognition — subsidiary still consolidates at reduced percentage Derecognizes assets and liabilities; recognises disposal gain/loss and CTA recycling in P&L
Historical periods after an ownership change Single percentage applied across all periods — NCI figures in prior periods are wrong Each period uses the ownership structure in effect at that time — automatically

Four event types. Each treated correctly.

Record an ownership event with a date, percentage, and type. BrizoConsol determines the correct accounting treatment and applies it — no journals to prepare by hand.

Step Acquisition

Step-up to control

Previously held interest is remeasured at fair value on the acquisition date. Any gain or loss is recognised in P&L. Goodwill is calculated on the full fair value of the subsidiary at that date, per IFRS 3 / US GAAP ASC 805.

FV gain/loss → P&L · Goodwill recalculated
Step Acquisition

Additional purchase while controlling

No goodwill impact. The difference between the consideration paid and the increase in the parent's share of net assets is recognised directly in equity — an equity transaction, not a business combination.

Equity reserve movement · No P&L
Partial Disposal

Partial sale — control retained

Proceeds versus the decrease in the parent's share of net assets go to equity. No gain or loss in P&L. NCI is increased to reflect the reduced parent ownership. Correct treatment per IFRS 10 / ASC 810.

Equity transaction only · No P&L
Partial Disposal

Disposal — control lost

The subsidiary is derecognised. A disposal gain or loss is posted to P&L: proceeds plus fair value of any retained interest, less the carrying amount of the subsidiary's net assets and any related goodwill and CTA. Remaining interest remeasured at fair value.

Derecognition · Disposal gain/loss → P&L

Goodwill calculated once — on the date control is acquired.

When a parent steps up from an associate position to a controlling stake, IFRS 3 requires remeasuring the previously held interest at acquisition-date fair value. BrizoConsol records this automatically.

  • Enter the acquisition date and percentage — BrizoConsol identifies this as a step-up to control
  • Input the acquisition-date fair value of the previously held interest and the total consideration paid
  • Goodwill is computed: consideration + NCI fair value + previously held FV − net identifiable assets
  • Fair value gain or loss on the previously held interest posts automatically to P&L
  • Full consolidation applies from the acquisition date forward — prior periods remain equity-method
Goodwill Calculation — Acquisition Date
Component SGD Source
Consideration paid (37% step-up) $510,000 Input
FV of previously held interest (35%) $380,000 Input
NCI at fair value (28%) $224,000 Input
Net identifiable assets ($830,000) Input
Goodwill recognised $284,000 Auto
FV gain on previously held interest +$47,200 → P&L Auto

Control retained or lost — the treatment is different. BrizoConsol knows which.

IFRS 10 and ASC 810 draw a sharp line: selling down while keeping control is an equity transaction. Losing control triggers derecognition and a P&L gain or loss. Record the disposal — BrizoConsol applies the correct treatment automatically.

  • Disposal retaining control: proceeds vs. NCI movement goes to equity reserve — no P&L
  • Disposal losing control: subsidiary derecognised, disposal gain/loss computed and posted to P&L
  • CTA accumulated in OCI is recycled to P&L on derecognition — automatically included in the disposal gain/loss
  • Any retained interest is remeasured at fair value on the disposal date and recognised going forward
  • No journals to prepare — BrizoConsol computes and posts all entries from the ownership event record
Disposal — Control Lost · P&L Calculation
Component SGD
Proceeds on disposal $620,000
FV of retained interest (20%) $190,000
Net assets derecognised ($580,000)
Goodwill derecognised ($142,000)
NCI derecognised $128,000
CTA recycled from OCI ($18,400)
Disposal gain recognised in P&L $197,600
Retained interest — automatically recognised at $190,000 fair value on disposal date and accounted for under the equity method from that period forward.

Everything that flows from an ownership change.

Goodwill Calculation

Goodwill is computed on step-up to control using the acquisition-date inputs you provide — consideration, NCI fair value, previously held interest, and net identifiable assets. Recalculation never happens on intra-control transactions.

NCI Recalculation

Every ownership event updates NCI across P&L, Balance Sheet, and equity. Historical periods retain the NCI percentage that was in effect at the time — no retroactive errors, no manual corrections.

Fair Value Remeasurement

On step-up to control, the previously held interest is remeasured at acquisition-date fair value. The gain or loss flows to P&L automatically — no separate journal entry required.

CTA Recycling on Disposal

When control is lost, cumulative translation differences (CTA) accumulated in OCI are recycled to P&L as part of the disposal gain or loss — as required under IFRS and US GAAP. Calculated automatically.

Equity Reserve Movements

Intra-control purchases and disposals where control is retained go through equity — not P&L. The difference between consideration and NCI movement is tracked in a dedicated equity reserve, keeping your P&L clean.

Full Audit Trail

Every ownership event is logged with its date, type, percentage, and accounting treatment applied. Auditors can trace every goodwill figure, every NCI movement, and every disposal gain back to a dated, documented event.

Works across IFRS, US GAAP, UK GAAP, and SFRS.

The principles are consistent across standards — but the details differ in edge cases. BrizoConsol applies the correct treatment for the standard assigned to each entity.

  • IFRS 3 / IFRS 10 — step acquisitions and disposals per IASB standards, including SFRS equivalent
  • ASC 805 / ASC 810 — US GAAP business combinations and consolidation treatment
  • FRS 102 (UK GAAP) — business combination and NCI treatment under UK standards
  • Mixed-standard groups — different entities can apply different standards within the same consolidation
Standard applied per entity
HoldCo SG Parent SFRS
OpCo AU 72% owned IFRS
OpCo US 80% owned US GAAP
OpCo UK 65% owned UK GAAP
Step acquisition and disposal treatments are applied per the standard assigned to each entity — correct across every entity in a mixed-standard group.

Included in the Pro Plan.

Step acquisitions, partial disposals, goodwill calculation, NCI, CTA, and multi-accounting standards — all included in Pro. No add-ons, no implementation fees.

$35 /entity/month
Pro Plan · Billed monthly
  • Step Acquisitions & Partial Disposals
  • NCI / Minority Interest
  • Currency Translation (CTA / FCTR)
  • Multi-Accounting Standards
  • Intercompany Eliminations
  • Unlimited users included

No credit card required · 30 days full access

Also in Pro: CTA / FCTR → · NCI → · Accounting Standards →

Common Questions

What is a step acquisition?
A step acquisition (or business combination achieved in stages) is when a parent acquires a subsidiary through two or more separate purchases rather than a single transaction. The most significant step is when control is obtained — that's the point at which IFRS 3 / ASC 805 applies and goodwill is calculated.
What happens to goodwill when a parent buys more shares of a subsidiary it already controls?
Nothing — goodwill is fixed at the acquisition date when control was first obtained. Any subsequent purchase of shares from minority shareholders while the parent retains control is an equity transaction. BrizoConsol applies this automatically: intra-control purchases adjust NCI and equity reserves, and don't touch the goodwill figure.
How does BrizoConsol determine whether a disposal retains or loses control?
Based on the resulting ownership percentage you enter. If the parent's stake after the disposal remains above 50% (or the threshold for control under the relevant standard), BrizoConsol applies the equity transaction treatment. If control is lost, it applies derecognition. You can also flag a loss of control manually if control is lost before the 50% threshold — for example, due to changes in shareholder agreements.
What is CTA recycling and why does it matter on disposal?
When a foreign subsidiary operates in a different currency, exchange differences on translating its net assets accumulate in Other Comprehensive Income (OCI) as the Currency Translation Adjustment (CTA). Under IFRS 10, when control of that subsidiary is lost, those accumulated CTA balances must be "recycled" — reclassified from OCI into P&L as part of the disposal gain or loss. BrizoConsol calculates and includes this recycling automatically.
Does this work if the subsidiary is in a different currency?
Yes. Step acquisition and disposal calculations are performed in the subsidiary's functional currency and then translated. CTA movements are tracked throughout and recycled correctly on disposal — no separate currency adjustment is needed.
Can I record a step acquisition where the initial investment was held before BrizoConsol was set up?
Yes. You can backdate ownership events to any point in time. BrizoConsol will apply the correct treatment to each historical period — prior periods use the equity method for a sub-50% stake and full consolidation from the acquisition date forward.

Step transactions, handled correctly.

Record ownership events once. BrizoConsol applies the right treatment automatically — goodwill, NCI, CTA, and disposal gains across every period.

No credit card required · Cancel anytime