One would imagine that private equity (PE) houses, investment funds and their investors might be feeling relieved after the International Accounting Standards Board (IASB) issued its long-awaited proposals to exempt investment entities from consolidation of their subsidiaries. These proposals will, it says, lower costs for preparers, provide investors with much-needed information, and broadly align with US GAAP. The IASB is clearly trying to be helpful, but has it hit the target?