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Consolidation — Investment entities


The objective of this project is to develop an exemption from the requirement to consolidate subsidiaries for eligible investment entities (such as mutual funds, unit trusts, and similar entities), instead requiring the use of the fair value to measure those investments.

The project originated from the consultation process around the issue of IFRS 10 Consolidated Financial Statements, where many respondents questioned the usefulness of the financial statements of investment entities if IFRSs continued to require the consolidation of entities that an investment entity controls.


Current status of the project

This project has been completed.  The IASB issued Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) on 31 October 2012.


Project milestones

June 2010 Added to the IASB's agenda
25 August 2011 Exposure Draft ED/2011/4 Investment Entities published Comment deadline 5 January 2012
31 October 2012 Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) issued Effective for annual periods beginning on or after 1 January 2014

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.