AASB 10 Consolidated Financial Statements B89-B91: Potential voting rights in the allocation of profit and equity: allocate between parent and non-controlling interests on present ownership, unless an instrument already gives access to the returns, in which case reflect its eventual exercise and keep it outside AASB 9

What does B89-B91 require?

When options, convertibles or other derivatives carrying potential voting rights exist, the shares of profit or loss and equity changes going to the parent and to non-controlling interests are set on current ownership interests and ignore possible exercise or conversion. The exception is where, in substance, a transaction already lets the entity obtain the returns that an ownership interest brings; then the allocation anticipates exercise of those instruments. Instruments of that kind are not accounted for under AASB 9, while every other subsidiary instrument carrying potential voting rights is.