Dataline: A look at the new IFRS consolidation standard and how it compares to US GAAP -- Many aspects of the IASB's consolidation guidance are now converged with US GAAP (revised November 15, 2011*) (No. 2011-29)

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Dataline 10/27/2011 by Assurance services
Dataline: A look at the new IFRS consolidation standard and how it compares to US GAAP -- Many aspects of the IASB's consolidation guidance are now converged with US GAAP (revised November 15, 2011*) (No. 2011-29)

At a glance

The IASB released IFRS 10, Consolidated Financial Statements, in May 2011, introducing new guidance on when investors will have to consolidate investees. Many aspects of the new guidance are now converged with U.S. GAAP. The new approach combines the concepts of power to control and exposure to variable returns in the determination of whether control exists, and whether consolidation is required. This Dataline takes an in-depth look at the new guidance in IFRS 10. It includes numerous examples and illustrations to help you get up to speed quickly on the new approach.

The IASB released IFRS 10, Consolidated Financial Statements, in May 2011, introducing new guidance on when investors will have to consolidate investees. Many aspects of the new guidance are now converged with U.S. GAAP. The new approach combines the concepts of power to control and exposure to variable returns in the determination of whether control exists, and whether consolidation is required.

The new standard is available for early adoption, with mandatory application required from January 1, 2013. Retrospective application is required with certain practicability exceptions. The effective date for IFRS 12, Disclosure of Interests in Other Entities, which deals with the related disclosures, coincides with that of IFRS 10.

This Dataline takes an in-depth look at the new guidance in IFRS 10. It includes numerous examples and illustrations to help you get up to speed quickly on the new approach.


* A footnote was added to Illustration 20 to clarify that the more rights held by a decision maker as compared to other parties, the more likely the decision maker is a principal.