22/07/2015 - EFRAG Endorsement Advice of Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)

On 18 December 2014, the IASB published Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) ('the Amendments').

The objective of the Amendments is to clarify certain aspects of the accounting requirements for entities that qualify as investment entities under IFRS 10 Consolidated Financial Statements. The Amendments also provide relief in certain circumstances, which will reduce the costs to preparers of applying IFRS. The Amendments are effective for annual reporting periods beginning on or after 1 January 2016. Earlier application is permitted.

EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. EFRAG therefore recommends the endorsement of the Amendments. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.

The Endorsement Advice Letter to the European Commission can be found below.

EFRAG has also updated its Endorsement Status Report.