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AZ company invests in B company and gets 40% of B company shares. AZ company by having significant influence in B company, recognizes Investment in associate - asset in its balance sheet. According to equity accounting, AZ company should record 40% of B company' Net income in its assets and decrease it every time it receives dividends from B company. B company in its Balance sheet estimates useful life of the factory -cash generating unit- 30 years. AZ company assumes that after 15 years, it will sell all 40% of shares and will hold zero shares of B company.

 Question 1: AZ company knows that it will possess zero shares of B company in 15 years.Does AZ company need to make adjustment to B company Net income - by changing 30 years depreciation estimate that B company used to 15 years depreciation. Is share position determines the depreciation estimate and whether it is allowed in equity accounting?

 2nd Case: all the same as above, except- AZ company assumes that after 15 years, it will sell 35% of shares and will keep only 5% of B company shares. This means of course that AZ company after 15 years have to reclassify investment asset into other financial assets.

Question 2: AZ company knows that its share will decrease substantially in 15 years, which means less earnings after that. Should AZ company need to adjust equity accounting Net income by changing the depreciation estimate of B company to 15 years from 30 years by assuming that main value expected to be received by AZ company in first 15 years? Thanks a lot in advance.
in IFRS 10 - Consolidated Financial Statements by

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