This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Deloitte comment letter on ED 10 'Consolidated Financial Statements'

Published on: 20 Mar 2009

We recognise the importance of this project and fully support the objectives of issuing a single Standard for consolidation and improving the disclosure requirements relating to consolidated and unconsolidated entities. Furthermore, we believe that applying a single definition of control to all entities is the appropriate basis for the consolidation model.

However, the principles underlying the consolidation model proposed in the ED are not well established and the guidance within the ED is ambiguous and inconsistent in a number of fundamental areas, not least of which in the failure to distinguish between ‘power to control’ and ‘ability to control’. Without a clear definition of control, the resulting Standard will be difficult to interpret and apply on a consistent basis. As a consequence, the financial statements of groups will be less, not more, comparable and understandable. We do not believe that the ED in its current form is an improvement on existing IFRSs.


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.