EFRAG has completed its due process regarding Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27), and has submitted its Endorsement Advice Letter and Effects Study Report to the EC.
On 31 October 2012, the IASB issued 'Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)' (the Amendments), to address the concerns of users of financial statements, who noted that fair value was the most relevant information in their analysis of investment entities’ subsidiaries.
The Amendments define an investment entity and introduce an exception to consolidating particular subsidiaries for investment entities. These amendments require an investment entity to measure those subsidiaries at fair value through profit or loss in accordance with IFRS 9 'Financial Instruments' in its consolidated and separate financial statements. The amendments also introduce new disclosure requirements for investment entities in IFRS 12 and IAS 27.
EFRAG is issuing its Endorsement Advice Letter and Effects Study Report relating to the endorsement of the Amendments for use in the European Union and European Economic Area. EFRAG supports the Amendments and has concluded that they meet the technical requirements for endorsement. EFRAG has also concluded that the benefits to be derived from implementing the Amendments are likely to outweigh the costs involved.
Press release
Endorsement advice letter
Effects study report
© EFRAG - European Financial Reporting Advisory Group
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