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, revenues and expenses with those of the entities it controls as a single economic entity.
The project objective is to publish a single IFRS on consolidation replacing IAS 27 Consolidated and Separate Financial Statements and the interpretation SIC-12 Consolidation - Special Purpose Entities. The project addresses the following aspects:
- a revision of the control definition in order to apply the same control criteria to all entities. The work on the revised control definition will focus on, but is not limited to, the consolidation of structured entities.
- enhanced disclosures about consolidated and non-consolidated entities.
Where are we now?
In July 2008, the staff presented a first preliminary staff working draft of an exposure draft to the Board.
This draft was published on this Website as part of the observer notes. The draft has not been formally approved by the Board and is not an exposure draft, which the IASB issues only upon completion of an extensive due process.
To receive external input at an early stage of the project, the IASB held a round table in London on 17 September 2008. Details on the location and the exact timing of the round table as well as the updated staff working draft and the discussion points are available here.
Audio recordings of the round-table held are now available. To listen to sessions 1 and 2 of the meeting, click on the links below:
A second round table will take place later in October in North America.
Future round tables
A second round table will be held at the end of October in North America. Further details have not yet been finalised and will be published in due course. The IASB also plans to hold additional round tables, if there is sufficient public interest. Participation in those round tables would be open to interested parties with relevant technical experience.
You can register your interest in attending the round tables (either as a participant or an observer) now and will be notified when the timing and the location have been confirmed.
To register your interest for attending a future round table, please send an email to vblackburn@iasb.org (ref: North America round table consolidation) with the following details:
- Attendance requested as: participant / observer (please select one)
Please note that attendance at the round tables is at the discretion of the IASB and that, although we shall aim to admit every interested party to the round tables, capacity constraints will mean that we may not be able to accommodate all those who wish to attend.
Estimated project completion
In response to the recommendations of the Financial Stability Forum, the IASB prioritised its Consolidation project and expects to publish an exposure draft for public comment in Q4 2008.
The current project plan envisages the issue of a revised standard in the second half of 2009.
Further information
- Open a full project report [PDF], including a summary of the tentative decisions the Board has reached.