The IASB has issued for public comment Exposure Draft ED/2014/2 Investment Entities: Applying the Consolidation Exception (Proposed amendments to IFRS 10 and IAS 28) (ED/2014/2).
ED/2014/2 is proposing to clarify three issues about investment entities measuring subsidiaries at fair value instead of consolidating them. ED/2014/2 is proposing the following amendments:
The New Zealand Accounting Standards Board (NZASB) encourages you to read the Exposure Draft, consider how the proposals will affect the recognition and measurement of certain investment entities, and comment on the proposed amendments.
The proposals in IASB ED/2014/2 are relevant for Tier 1 and Tier 2 for-profit entities. The XRB Board is committed to adopting international standards in the for-profit sector. Generally, once a standard has been issued by the IASB, the NZASB then issues the New Zealand equivalent standard without further consultation. Therefore, this Exposure Draft is your opportunity to comment on the proposed future standard that will be issued in New Zealand.
Comments are due to the NZASB by 5 August 2014 and to the IASB by 15 September 2014.
Comments, both formal and informal, can be made to the NZASB addressed to the Chief Executive, External Reporting Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to firstname.lastname@example.org.
We also encourage you to send comments directly to the IASB, with a copy to the NZASB. Comments can be made electronically to the IASB website (www.ifrs.org), using the “Submit a comment letter” page.
We would appreciate receiving a copy of your submission in electronic form (preferably Microsoft Word format) as that helps us to efficiently collate and analyse comments. Any electronic file should specify the exposure draft number and title.
Please note in your submission on whose behalf the submission is being made (for example own behalf, a group of people, or an entity).
We intend publishing all submissions on the XRB website (www.xrb.govt.nz), unless the submission may be defamatory. If you have any objection to publication of your submission, we will not publish it on the internet. However, it will remain subject to the Official Information Act 1982 and, therefore, it may be released in part or in full. The Privacy Act 1993 also applies.
If you have an objection to the release of any information contained in your submission, we would appreciate you identifying the parts of your submission to be withheld, and the grounds under the Official Information Act 1982 for doing so (e.g. that it would be likely to unfairly prejudice the commercial position of the person providing the information).