EFRAG: Invitation to comment on draft endorsement advice and draft effects study report on Investment Entities

20 December 2012

EFRAG has issued an Invitation to Comment relating to the endorsement for use in the EU of Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27). Comments are requested by 28 January, 2013.

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.

Press release

EFRAG-draft endorsement advice on investment entities

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