Beruflich Dokumente
Kultur Dokumente
Introducing
IFRS 10 Consolidated
Financial Statements and
related disclosures in
IFRS 12 Disclosures
The views expressed in this presentation are those of the presenter,
not necessarily those of the IFRS Foundation or the IASB
2011 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Inconsistencies in practice
Tension between IAS 27 (control)
and SIC 12 (risk and rewards)
Inconsistent application
Main decisions
1. De facto control
Entity can control with less than 50% of voting rights.
Factors to consider include:
Size of the holding relative to the size and dispersion of other vote
holders
Potential voting rights
Other contractual rights
Main decisions
3. Potential Voting Rights
Substantive potential voting rights (PVR) can give the holder power
Consider the terms and conditions, including:
4.
Whether there are any barriers that prevent the holder from exercising
Whether exercise of the rights would be beneficial to the holder
Whether the rights are exercisable when decisions need to be made
Agency relationships
Main decisions
5. Disclosures
Enables investors to assess the nature of, and changes in, the
risks associated with its interests in (un)consolidated structured
entities
6. Effective Date
Structured entities (or variable interest entities) now have the same basis for
consolidation*
Control assessment for voting interest entities differ
Power with less than a majority of voting rights
Consideration of options and convertible instruments
Difference to
FASB ED
Questions or comments?
Expressions of individual
views by members of the
IASB and
its staff are encouraged.
The views expressed in this
presentation are those of the
presenter. Official positions
of the IASB on accounting
matters are determined only
after extensive due process
and deliberation.
2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org