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Deloitte comment letter on IASB ED/2013/10 "Equity method in separate financial statements"

Published on: Feb 10, 2014

Deloitte's IFRS Global Office has submitted a letter of comment responding to the IASB's exposure draft ED/2013/10 Equity Method in Separate Financial Statements.

The letter, which expresses the views of Deloitte's IFRS Global Office only, includes the following opinions:

  • We do not object to the proposal, as a short-term measure, if certain modifications are made before the amendments are finalized to address issues raised by entities in certain jurisdictions that require the use of the equity method to account for investments in subsidiaries, joint ventures, and associates in preparing their separate financial statements. We are concerned that full consideration surrounding the conceptual issues in both separate financial statements and the equity method of accounting has not been taken.
  • We also do not agree with the amendment made to IAS 28 because we do not believe that the principles applied to loss of control over a subsidiary in IFRS 10 should be applied in a situation in which loss of control does not result in a change in the method of accounting applied because both subsidiaries and associates or joint ventures are accounted for using the equity method.

Download the full comment letter below.


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