IFRS Practice Issues: Adopting the Consolidation Suite of Standards - Transition to IFRSs 10, 11 and 12
Jan 21, 2013
From the Financial Reporting View
KPMG's ISG recently published IFRS Practice Issues: Adopting the Consolidation Suite of Standards - Transition to IFRSs 10, 11 and 12 which addresses the transition to IFRS 10,Consolided Financial Statements; IFRS 11, Joint Arrangements; and IFRS 12, Disclosure of Interests in Other Entities, which are effective for annual periods beginning on or after January 1, 2013. Specifically, the publication highlights that:
- The IASB's decision to limit mandatory restatement of comparable information to one year simplifies adoption of IFRS 10, 11, and 12;
- It is easier to test the consolidation conclusion, with no need to restate for subsidiaries over which control was lost before January 1, 2013;
- The IFRS provide relief from onerous disclosures for unconsolidated structured entities; and
- There is no need to maintain parallel records for 2013.