• SIC 12 Consolidation – Special Purpose Entities
  • IAS 19 Employee Benefits


  • IFRIC D7 Issued 30 June 2004
  • Comment Deadline 13 September 2004
  • Click for Press Release (PDF 22k).
  • The draft Interpretation was available publicly on the IASB's Website during the comment period.
  • Final SIC 12 amendment issued November 2004. Click for Press Release (PDF 20k).

Deloitte Letter of Comment on IFRIC D7

Important: IFRIC D7 resulted in amendment to SIC 12 in November 2004. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

Summary of IFRIC D7

D7 proposes an amendment to the scope of Interpretation SIC 12 Consolidation – Special Purpose Entities. D7 would remove the scope exclusion in SIC 12 for equity compensation plans. Hence, an entity that controls an employee benefit trust (or similar entity) set up for the purposes of a share-based payment arrangement would be required to consolidate that trust.

Post-employment benefit plans would continue to be excluded from SIC 12; however, D7 proposes to amend that scope exclusion to include other long-term employee benefit plans, to ensure consistency with the requirements of IAS 19 Employee Benefits. At present, SIC-12 does not exclude other long-term employee benefit plans from its scope. However, IAS 19 requires those plans to be accounted for in a manner similar to that for post-employment benefit plans.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.