The International Accounting Standards Board (IASB) today published for public comment an Exposure Draft of proposed narrow-scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011).
The objective of the proposed amendments is to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of a subsidiary. The main consequence of the proposed amendments is that a full gain or loss would be recognised on the loss of control of a business (whether it is housed in a subsidiary or not), including cases in which the investor retains joint control of, or significant influence over, the investee.
The issue originated from a submission to the IFRS Interpretations Committee. As a result, the Interpretations Committee recommended that the IASB should amend IFRS 10 and IAS 28 (2011). The Exposure Draft can be accessed via the ‘Comment on a proposal’ page. The IASB requests comments on these proposals by 23 April 2013.
Mark Byatt, Director of Communications and External Affairs, IFRS Foundation
Telephone: +44 (0)20 7246 6472
Chris Welsh, Communications Manager, IFRS Foundation
Telephone: +44 (0)20 7246 6495
Michael Stewart, Director of Implementation Activities, IASB
Telephone: +44 (0)20 7246 6922
Patrick Le Flao, Practice Fellow, IASB
Telephone: +44 (0)20 7246 6935