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Conceptual Framework Phase D — Reporting Entity

Date recorded:

The staff introduced the topics by noting that the objective of the meeting is to redeliberate the issues related to control of an entity included in the May 2008 Discussion Paper. The DP presented the Board's preliminary view that control of an entity should be defined at the conceptual level. Most respondents agreed with the Board's preliminary view. The staff asked the Board whether they agreed that control of an entity should be defined at the conceptual level.

The board agreed that control should be defined at the conceptual level, a number of board members raised oncerns as to the interaction of this definition with the standards level definition of control. Board members asked the staff to draft the definition of control in broad, high level terms, with much less detail than is currently being considered. A number of board members noted that the specific definition of control is already in ED10, so there is no need to repeat it in the Conceptual Framework. The Chairman directed the staff to wait until comments were received on ED10 before finalizing any definition on control.

In relation to significant influence and proportionate consolidation the board continued to express support that the relationship referred to as significant influence does not constitute control of an entity, and the board agreed that proportionate consolidation should not be discussed in detail in the forthcoming Exposure Draft.

The board agreed that the staff should proceed with drafting the Exposure Draft, subject to timing on the feedback on the ED10 proposals.