Consolidation — Investment entities
The objective of this project is to develop an exemption from the requirement to consolidate subsidiaries for eligible investment entities (such as mutual funds, unit trusts, and similar entities), instead requiring the use of the fair value to measure those investments.
The project originated from the consultation process around the issue of IFRS 10 Consolidated Financial Statements, where many respondents questioned the usefulness of the financial statements of investment entities if IFRSs continued to require the consolidation of entities that an investment entity controls.
Current status of the project
This project has been completed. The IASB issued Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) on 31 October 2012.
|June 2010||Added to the IASB's agenda|
|25 August 2011||Exposure Draft ED/2011/4 Investment Entities published||Comment deadline 5 January 2012|
|31 October 2012||Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) issued||Effective for annual periods beginning on or after 1 January 2014|