Practical guide to IFRS

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Jun 2013   

Investment entities: Exception to consolidation

Many funds and similar entities will be exempted from consolidating controlled investees under amendments to IFRS 10, 'Consolidated financial statements'. This is a result of the IASB issuing amendments to IFRS 10, IFRS 12, 'Disclosure of interests in other entities' and IAS 27, 'Separate financial statements', on 31 October 2012. These amendments will particularly benefit funds, as those that qualify will be able to fair value controlled investments, rather than having to consolidate them. The amendments apply for annual periods beginning on or after 1 January 2014; earlier application is permitted.