We comment on the proposed amendments for measuring quoted investments in subsidiaries, joint ventures and associates at fair value

  • Deloitte comment letter on IASB ED/2014/4 'Measuring Quoted Investments in Subsidiaries, Joint Ventures and Associates at Fair Value' Image

16 Jan 2015

We have published our comment letter on the International Accounting Standards Board's (IASB) Exposure Draft ED/2014/4 'Measuring Quoted Investments in Subsidiaries, Joint Ventures and Associates at Fair Value'.

The IASB's proposed amendments would confirm that the unit of account for investments in subsidiaries, joint ventures and associates is the investment as a whole, but that the fair value measurement of quoted investments in subsidiaries, joint ventures and associates should be the product of the quoted price multiplied by the quantity of financial instruments held, without adjustments. The IASB also proposed to align the fair value measurement of a quoted CGU to the fair value measurement of a quoted investment. Lastly, the proposed amendments also included an addition to the Illustrative Examples for IFRS 13 to illustrate the application of paragraph 48 of that standard to a net risk exposure of Level 1 financial assets and financial liabilities.

We disagree with the departure from the principle that fair value measurement should be consistent with the unit of account of the asset or liability to be measured.

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