Section 1591, Subsidiaries [Completed]

Effective date:

Fiscal years beginning on or after January 1, 2016.  Early adoption will be permitted.

Transitional provisions:

Effective for fiscal years beginning on or after January 1, 2016.  Early adoption will be permitted.

Last updated:

March 2015

Overview

At its meeting on March 18-19, 2014, the AcSB agreed that, other than drafting improvements, no other changes to the ED proposals were required as a result of the feedback received from stakeholders.

The new standard will replace Section 1590, Subsidiaries, and Accounting Guideline AcG-15, Consolidation of Variable Interest Entities

Section 1591 will provide new guidance on circumstances in which an enterprise controls another entity through mechanisms other than voting rights associated with a majority shareholding. In this regard, the AcSB decided to clarify and provide additional guidance concerning which types of contractual arrangements may give one entity control over another.

Other developments

March 2015

On March 30, 2015, the AcSB issued a Basis of Conclusions document in respect of Section 1591 which sets out how the AcSB reached its conclusions. As well, it sets out significant matters arising from comments received in response to the ED and indicates how the Board dealt with the issues raised.

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