IASB Concludes Deliberations of Consolidations Standard

Published on: 23 Jul 2010

Yesterday, the IASB concluded its deliberations of the comment letters received in response to its exposure draft Consolidated Financial Statements and directed the staff to begin drafting the following:

  • IFRS X, Consolidated Financial Statements, which will provide guidance on assessing control and whether subsidiaries should be consolidated.
  • IFRS Y, Disclosure of Involvement With Other Entities, which will contain disclosure requirements for subsidiaries, associates, joint arrangements, and unconsolidated structured entities.
  • An exposure draft, Investment Entities, which will propose that an investment entity should measure its controlled investments at fair value through profit or loss.

The staff will focus first on the consolidation standard and expects to post a staff draft to the IASB’s Web site by the end of August. The FASB plans to hold roundtables to discuss the IASB’s consolidation standard in the third quarter of 2010 and will determine whether to issue an exposure draft that is consistent with the IASB’s consolidation standard.

The IASB expects to issue the consolidation and disclosure standards during the fourth quarter of 2010.

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