Accounting Solutions: July 2011

Each month, experts at PwC consider the accounting implications of key IFRS changes

Accounting considerations for new consolidation, joint arrangements and interests in other entities disclosure standards

ABC plc has a number of special purpose entities (SPEs) that it consolidates, structured entities that it does not consolidate and joint arrangements that it proportionately consolidates. It has a year end of December 2011. Management at ABC plc has seen that IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements and IFRS 12, Disclosure of Interests in Other Entitites have been issued by the IASB. As the effective date for these standards is 1 January 2013 (subject to EU endorsement), ABC plc does not have to consider the requirements now. Will ABC plc continue to consolidate all its SPEs under IFRS 10?

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