Meaning of the date of initial application in IFRS 10 Consolidated Financial Statements
The IFRS Interpretations Committee received three requests to clarify the transitional provisions in IFRS 10. The Interpretations Committee discussed these issues in the September 2011 meeting and recommended that the IASB should consider these issues as a separate exposure draft, rather than as part of Annual Improvements.
In this meeting the IASB discussed the transitional provisions in IFRS 10 and decided to:
- add a definition of the date of initial application to IFRS 10. This would be 'the beginning of the reporting period in which IFRS 10 is applied for the first time';
- add a paragraph in IFRS 10 (C3A) to clarify that an entity is not required to make adjustments to the accounting for its involvement with an entity that was disposed of, or whose control was lost, in the comparative period(s); and
- amend paragraphs C4 and C5 of IFRS 10 to clarify how the investor shall retrospectively adjust comparative periods when the consolidation conclusion changes between IAS 27 Consolidated and Separate Financial Statements / SIC 12 Consolidation�Special Purpose Entities and IFRS 10.
All IASB members voted in favour of this decision.