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IFRS 10 — Consolidated Financial Statements

Effective date:

Fiscal years beginning on or after January 1, 2013, except for subsequent amendments. Earlier application of IFRS 10 is permitted if IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (as amended in 2011) and IAS 28 Investments in Associates and Joint Ventures (as amended in 2011) are applied at the same time.

Published by the IASB:

May 2011

Included in Part I of CPA Canada Handbook:

September 2011

Overview

IFRS 10 Consolidated Financial Statements outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls. Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee.

History of IFRS 10

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of CPA Canada Handbook2

May 12, 2011

IFRS 10, Consolidated Financial Statements published

This new standard defines the principle of control and establishes control as the basis for determining which entities are consolidated in consolidated financial statements. The principle of control is based on three criteria: power over the investee; exposure to variable returns from involvement in the investee; and the ability of the investor to use its power to affect the amount of its returns.

This new standard is effective for annual periods beginning on or after January 1, 2013. Earlier application of IFRS 10 is permitted if IFRS 11, IFRS 12, IAS 27 (as amended in 2011) and IAS 28 (as amended in 2011) are applied at the same time. An entity is encouraged to provide information required by IFRS 12 earlier than annual periods beginning on or after January 1, 2013.

September 2011

June 28, 2012

Amended by Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance

 

Paragraph C2 has been amended and paragraph C2A has been added to clarify the application of IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Paragraphs C2B, C4A-C4C, C5A and C6A-C6B have been added and paragraphs C3-C6 have been amended to clarify the date of initial application and the transition requirements.

These amendments are effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.

September 2012

October 31, 2012

Amended by Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) (project history)

 

The amendments introduce an exception for investment entities to the principle that all subsidiaries are consolidated. The amendments define an investment entity and require an investment entity to measure subsidiaries at fair value through profit or loss in accordance with IFRS 9, Financial Instruments or IAS 39, Financial Instruments: Recognition and Measurement.

The amendments are effective for annual periods beginning on or after January 1, 2014. Earlier application is permitted.

January 2013

September 11, 2014

Amended by Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

The standard has been revised to incorporate amendments issued by the International Accounting Standards Board in September 2014. The amendments include requiring a full gain or loss to be recognized when a transaction between an investor and its associate or joint venture involves assets that constitute a business. The amendments also require that a partial gain or loss be recognized when a transaction between an investor and its associate or joint venture involves assets that do not constitute a business.

The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier application is permitted.

November 2014

December 18, 2014

Amended by Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)

 

The amendments are effective for annual periods beginning on or after January 1, 2016. Early application is permitted.

 

April 2015

December 17, 2015

Amended by Deferring the Effective Date of the September 2014 Amendments to IFRS 10 and IAS 28

 

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) has been revised to incorporate the amendment issued by the International Accounting Standards Board (IASB) in December 2015. The amendment defers indefinitely the effective date of the amendments to IFRS 10 and IAS 28 issued by the IASB in September 2014, with earlier application permitted. Accordingly, the amendments to IFRS 10 and IAS 28 have been returned to the "IFRSs issued but not yet effective" section.

February 2016

 Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

Related IFRIC Agenda Rejection Notices

The rejection notices are available in our Deloitte Global section.

  • IFRS 3/IFRS 10 — Identification of the acquirer in accordance with IFRS 3 and the parent in accordance with IFRS 10 in a stapling arrangement (May 2014)
  • IFRS 10 — Definition of investment related services or activities (March 2014)
  • IFRS 10 — Classification of puttable instruments that are non-controlling interests (November 2013)
  • IFRS 10 & IFRS 11 — Transition provisions in respect of impairment, foreign exchange and borrowing costs (November 2013)
  • IFRS 10 — Effect of protective rights on an assessment of control (September 2013)
  • IAS 27 & IFRS 10 — Non-cash acquisition of a non-controlling interest (NCI) by a controlling shareholder in the consolidated financial statements (January 2013)

AcSB’s IFRS Discussion Group meetings

  • May 31, 2016 - IFRS 10 and IFRS 11: Accounting for Loss of Control Transactions
  • September 10, 2015 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
  • December 9, 2014 - IFRS 3, IFRS 6, IFRS 10 and IAS 16: Acquisition of an Entity Holding a Single Asset
  • June 12, 2014 - Adoption of IFRSs by Investment Funds

Amendments under consideration

Correction list for hyphenation

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