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Consolidation

IASB meeting summaries and observer notes


 IASB Septmber 2012


 

In this meeting the IASB discussed sweep issues that were identified after distribution of the Investment Entities (Amendments to IFRS 10, IFRS 12, IAS 27 and IAS 28) pre-ballot draft.

The IASB tentatively decided:

  1. To replace the requirement for an investment entity to have exit strategies for substantially all of its investments with a requirement that an investment entity should not hold any of its investments indefinitely.

    Eleven IASB members agreed and four IASB members disagreed.
  2. That the requirement that an investment entity should manage substantially all of its investments on a fair value basis should be changed to require an investment entity to measure substantially all of its investments at fair value.

    Thirteen IASB members agreed and two IASB members disagreed.
  3. That the proposed requirement in IAS 28 Investments in Associates and Joint Ventures that an investment entity should measure its investment in associates and joint ventures at fair value through profit or loss should be removed and that the current option in IAS 28 should be retained.

    Thirteen IASB members agreed .and two IASB members disagreed.
  4. That the Basis for Conclusions should clarify that an investment entity can measure investments at fair value through Other Comprehensive Income and still meet the ‘fair value measurement’ component of the investment entity definition.

    Thirteen IASB members agreed .and two IASB members disagreed.
  5. That an entity should not be disqualified from investment entity status only because it provides substantive investment-related services to third parties.
    All IASB members agreed.

 

Date: 9/27/2012