David Cairns provides a round-up
of the most recent and significant developments in regard to IFRS
Investment entities
The International Accounting Standards Board (IASB) has issued
an amendment to IFRS 10, Consolidated Financial
Statements, to require investment entities to measure their
investments in subsidiaries at fair value through profit or loss instead
of consolidating those subsidiaries.
The new requirement reflects a major change in the IASB’s
thinking. Ten years ago, it believed that the needs of the users of
investment entity financial statements were best served by the consolidation
of subsidiaries. Now it has been persuaded that fair value measurement
gives the most useful information.
