A parent company reduced its ownership in its subsidiary from 80% to 15%. How should this be reported on the parent's consolidated financial statements?

A) As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at fair value
B) As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at book value
C) As a write-down to the retained interest
D) As an adjustment to the shareholders' equity

When a parent company reduces its ownership in a subsidiary from 80% to 15%, it is considered a disposal of the interest in the subsidiary, which should be reported as such on the parent's consolidated financial statements. The remaining 15% interest that the parent retains should be reacquired at fair value, as this reflects the current market value of the interest in the subsidiary. Therefore, A is the correct choice. B is incorrect because reacquiring the retained interest at book value does not reflect the current market value of the interest in the subsidiary. C is incorrect because a write-down to the retained interest implies that the parent is recognizing an impairment loss, which may not be the case in this scenario. D is incorrect because an adjustment to shareholders' equity does not reflect the nature of the transaction.