Deconsolidation: Accounting for a Subsidiary You Sell or Close

Deconsolidation accounting under ASC 810-10-40 starts on the date the parent loses a controlling financial interest, not the legal closing date in the purchase agreement. ASC 810-10-40-5 then measures the gain or loss from four components, with the related equity and translation amounts recycled under ASC 810-10-40-4A. Indinero’s CPA-led accounting team, in continuous operations since 2009, documents that computation at the control date.