IFRS in Focus — IASB issues new standard on consolidation

Published on: 23 May 2011

On 12 May 2011, the International Accounting Standards Board (IASB) issued IFRS 10 Consolidated Financial Statements, a replacement for IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation – Special Purpose Entities.

This edition of IFRS in focus discusses the following topics:

  • Introduction
  • Overview of significant changes
  • Elements of control: power
    • Protective rights
    • Control with less then a majority of voting rights
    • Principal vs. agent relationship
  • Relationships with other parties
  • Elements of control: Exposure, or rights, to variable returns
  • Elements of control: Ability to use power to affect returns
  • Other considerations:
    • Whether a portion of an investee can be deemed as a separate entity
    • Continuous assessment
  • Effective date and transition.


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