Investment Entities

The IASB has proposed that an investment entity should not be required to consolidate those investments that it controls provided that the entity meets certain criteria and accounts for the investments at fair value through profit or loss. Under both IAS 27, Consolidated and separate financial statements, and IFRS 10, Consolidated financial statements, investment entities are currently subject to the same consolidation requirements as other entities. The proposals are included in exposure draft ED/2011/4 Investment entities.