• IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries
  • IAS 28 Investments in Associates


  • SIC D33 Issued 12 September 2001.
  • Final SIC 33 Consolidation and Equity Method – Potential Voting Rights and Allocation of Ownership Interests was approved by the IASB in December 2001. The text below does not reflect the final approved version.

Summary of SIC D33

An enterprise may own share warrants, share call options, debt or equity instruments that are convertible into ordinary shares, or other similar instruments that have the potential, if exercised or converted, to either give the enterprise additional voting power or reduce another party's voting power over the financial and operating policies of another enterprise (potential voting rights). SIC D33 addresses whether the existence and effect of potential voting rights are considered when assessing whether control under IAS 27 or significant influence under IAS 28 exists. SIC D33 proposes that their existence and effect, if presently exercisable or convertible, should be considered.

SIC D33 also addresses whether the proportion allocated to the parent and minority interest in preparing consolidated financial statements under IAS 27, and the proportion allocated to an investor that accounts for its investment in an associate using the equity method under IAS 28 should be determined based on present ownership interests or ownership interests that would be held if the potential voting rights were exercised or converted. D33 proposes that the proportion allocated should be determined solely based on present ownership interests.

Issued for public comment on 12 September 2001. Comment deadline 5 November.

Click for Press Release (PDF 23k).

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.