Consolidation
|
The project is conducted in two parts. The objective of the project is to revise the definition of control and to enhance related disclosures. The topic of investment entities and whether they should be excluded from the consolidation requirements has been separated from the main project because of timing differences. Read more
The differing concepts in IAS 27 and SIC-12 and uncertainties surrounding the consolidation requirements in both documents have caused divergence in practice and therefore reduced comparability of consolidated financial statements. The recent financial crisis has also highlighted a need for better disclosures about the reporting entity’s involvement with special purpose entities.
In addition, many constituents have asked the IASB to consider whether investment entities should be excluded from the scope of the consolidation standards. In light of those concerns, the IASB has initiated a project to revise the scope, accounting and disclosure requirements for consolidated financial statements. |
Project set-up
The project is conducted jointly with the FASB though the two boards have different timelines. The IASB will complete the consolidation project in two parts:
Page last updated: 31 August 2010