If a parent loses control of its sbsidiary, but maintains a noncontrolling equity interest in former sub: The parent should recognize a GAIN or LOSS immediately except when the parent is still a creditor of the former subsidiary The parent does not recognize a GAIN or LOSS until the parent corporation makes a hral determination as to whether they may purchase more of the former subsidiaries stock in the future. The parent should recognize any GAIN or LOSS immediately. This would not affect the income Statement because the parent should adjust retained earnings in the current period for any gain or loss