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EFRAG draft comment letter on the IASB's ED Investment Entities

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

29 Sep 2011

The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter on IASB's ED Investment Entities.

In August 2011 the IASB issued the Exposure Draft Investment Entities. The ED provided criteria and guidance to determine whether an entity is an investment entity. The draft proposed that an investment entity measure its investments in controlled entities at fair value through profit or loss in accordance with IFRS 9 Financial Instruments.

EFRAG believes that the parent of an investment entity should be permitted to retain the fair value accounting that is applied by its investment entity subsidiary to controlled entities. EFRAG also encourages IASB to carry out an impact assessment to better understand better the practical implications of any amendments to IAS 28 Investments in Associates and Joint Ventures.

Please click for EFRAG's press release containing a link to the draft comment letter (link to EFRAG website).

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