Narrow-scope Amendments to Section 1591 and Section 3056 - AcSB

Date recorded:

At its meeting on September 21-22, 2016, the AcSB approved the issuance of narrow-scope amendments to Section 1591, Subsidiaries, and Section 3056, Interests in Joint Arrangements, subject to final drafting and a written ballot.

The AcSB decided that the amendments to clarify the accounting for a subsidiary controlled through a combination of contractual arrangements and voting interests will be effective for fiscal years beginning on or after January 1, 2018, in order to coincide with the effective date of amendments to be issued as a result of its Subsidiaries and Investments project.

The amendments to clarify that the transition provisions may not be applied when an enterprise changes its accounting policy choice to consolidate its subsidiaries at any time in the future, and that an enterprise preparing non-consolidated financial statements is not required to assess whether contractual arrangements give rise to control, will be effective for fiscal years beginning on or after January 1, 2017, with earlier application permitted.

The AcSB also agreed that, other than drafting improvements, no other changes to the Exposure Draft proposals are required as a result of the feedback received from stakeholders.  The AcSB expects to issue the amendments to Sections 1591 and 3056 in December 2016.

Review the Executive Summary on the AcSB's Web site.

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