Consolidation
In June 2003, the IASB added a project on consolidation to its agenda. The consolidated financial statements of an entity present its assets, liabilities, equity, income, expenses and cash flows together with those of the entities it controls.
The project objective is to publish a single IFRS on consolidation replacing the IAS 27 Consolidated and Separate Financial Statements and the interpretation SIC-12 Consolidation - Special Purpose Entities. The project addresses the following aspects:
1. a revision of the definition of control and related application guidance so that a control model can be applied to all entities.
2. enhanced disclosures about consolidated and unconsolidated entities.
Where are we now?
In response to the recommendations of the Financial Stability Forum, the Board has accelerated its consolidation project and published an exposure draft in December 2008. The Exposure Draft comment period ended on 20 March 2009.
The Exposure Draft can be accessed here.
To read comment letters, click here.
Access the web presentation introducing the exposure draft.
Please note that the above Webcast(s) will no longer be available after 90 days of the meeting date.
Round tables
The IASB held round table discussions in June 2009 on its proposals for consolidation and derecognition of financial instruments in North America, Asia and Europe. Round tables were also held for the project in September 2008. Click here for further information.
Estimated project completion
The current project plan envisages the issue of a revised standard in the second half of 2009. The Board will continue to work toward this goal and will reassess the timing of the project later in the third quarter.
Further information
- Open a full project report [PDF], including a summary of the tentative decisions the Board has reached.