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.