Deloitte comment letter on tentative agenda decision on IAS 27 — investment in a subsidiary accounted for at cost — step acquisition

Published on: 21 Nov 2018

We have commented on the IFRS In­ter­pre­ta­tions Committee's pub­li­ca­tion in the September 2018 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the accounting for a step acquisition of a subsidiary measured at cost in separate financial statements.

We agree with the IFRS In­ter­pre­ta­tions Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision and with Committee members’ preference for the ‘deemed cost’ approach to such transactions. We also believe that an agenda decision from the Committee would provide sufficient guidance to address this issue and, therefore, that standard-setting activity is not necessary at this time.

Download the full comment letter below.


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