IASB Issues Proposals on Investment Company Guidance
Yesterday, the IASB published an exposure draft1 (ED) on accounting for investment entities. As noted in the IASB’s press release, the ED’s proposals “define an investment entity as a separate type of entity that would be exempt from the accounting requirements in IFRS 10.”2 The ED marks the latest step in the IASB’s joint effort with the FASB to provide new guidance on assessing whether an entity is an investment entity. Under the proposals, an investment entity would account for its investments at fair value through profit or loss.
The FASB is currently scheduled to issue its own ED on the project later in the third quarter of this year. (Watch for Deloitte’s upcoming Heads Up on the FASB’s ED.)
For more information, see the IASB’s press release.
[1] IASB Exposure Draft ED/2011/4, Investment Entities.
[2] IFRS 10, Consolidated Financial Statements.
