Consolidation
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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:
| Phases |
Status |
| Part one: Consolidation and disclosure |
IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities published on 12 May 2011. |
| Part two: Investment entities |
Exposure draft Investment Entities published in August 2011. |
Page last updated: 4 May 2012
Related information
Read the press release on IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities
Click here to listen to a podcast introducing IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities
A webcast introducing IFRSs 10, 11 & 12 [May 2011] - click here to listen
Click here to view the interaction between IFRS 10,11 and12
Click here for letters received after the publication of IFRSs 10, 11 and 12