Deconsolidation
AccountingAlso called: Loss of control
The removal of a subsidiary from consolidated accounts, line by line, when control over it is lost — with any retained interest recognised at fair value and the resulting difference taken to profit or loss.
In plain terms
Revenue leaves and so do the borrowings, which reads as deleveraging with no repayment. It also happens when a subsidiary enters insolvency and a resolution professional displaces its board.