# Deconsolidation

> Removing a subsidiary from the group accounts from the date the parent loses control, with a gain or loss recognised on the disposal.

Source: https://finconsol.com/blog/glossary/deconsolidation/ (updated 28 October 2026)

## Why does it matter in a group?

A subsidiary leaves the group accounts from the date the parent loses [control](/blog/glossary/control/), whether by a sale, a loss of votes or a change in agreements. The group removes the subsidiary's assets, liabilities and [non-controlling interest](/blog/glossary/non-controlling-interest/), records any stake it keeps at fair value, and takes the gain or loss to profit or loss. Amounts held in other comprehensive income for that subsidiary, such as its [translation reserve](/blog/glossary/translation-reserve/), move to profit or loss as well.[1](#src-1)

## A small example

Zenvara sells all of Quillfern for GBP 6,000,000. Quillfern's net assets in the group accounts, goodwill included, are GBP 5,200,000, and its translation reserve holds a credit of GBP 300,000. The gain is 6,000,000 less 5,200,000 plus 300,000, which is GBP 1,100,000.

## Sources

## Sources

1. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraphs B97 to B99.