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IFRS 10 summary and timeline

A summary of IFRS 10 Consolidated Financial Statements, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.


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IFRS 10 replaces those parts of IAS 27 that relate to consolidated financial statements (IAS 27 revised now concentrates on separate financial statements only), and SIC 12 in its entirety.

IFRS 10 uses control as the single basis for consolidation, and requires that all three of the following are in place in order to establish control and so consolidate an investee:

  1. Power over the investee
    Power is the ability to direct those activities which significantly affect the investee's returns. It arises from rights, which may be straightforward (eg, through voting rights) or complex (eg, through one or more contractual arrangements).
  2. Exposure, or rights, to variable returns from involvement with the investee
    Returns must have the potential to vary as a result of the investee’s performance and can be positive, negative or both.
  3. The ability to use power over the investee to affect the amount of the investor's returns.

When assessing whether control exists, an investor with decision making rights should establish whether it is acting as a principal or agent of other parties. An investor that is an agent does not control an investee when it exercises decision-making rights delegated to it.

Where an investee is controlled, it is consolidated. IFRS 10 guidance on the consolidation process does not differ from that given by IAS 27 (2008). In other words:

  • The parent company should prepare consolidated financial statements using uniform accounting policies.
  • Like items of the parent's and subsidiaries' assets, liabilities, equity, income and expenses are combined.
  • The carrying amount of the parent's investment in each subsidiary and the parent's portion of equity of each subsidiary is offset, with any related goodwill accounted for in accordance with IFRS 3.
  • Intra-group assets, liabilities, equity, income, expenses and cash flows are eliminated in full, as are any unrealised profits.
  • Non-controlling interests are presented within equity;
  • Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are accounted for within equity.
  • Where control is lost, a gain or loss on disposal arises, and the carrying value of any remaining investment is revalued to fair value.

IFRS 10 does not include any disclosure requirements; these are included in IFRS 12 Disclosure of Interests in Other Entities.


Date Update
17 December 2015 IASB issues Effective Date of Amendments to IFRS 10 and IAS 28
Announces the postponement of narrow-scope amendments to IFRS 10 and IAS 28.
18 December 2014 IASB issues Investment Entities: Applying the Consolidation Exception (amendments to IFRS 10, IFRS 12 and IAS 28)
Effective for annual periods starting on or after 1 January 2016.
16 September 2014 IASB publishes proposals for measuring quoted investments in subsidiaries, joint ventures and associates at fair value
11 September 2014 IASB issues Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
Effective date is deferred indefinitely. Narrow-scope amendments to IFRS 10 and IAS 28 address inconsistencies between requirements in both standards.
11 June 2014 IASB publishes Exposure Draft Investment Entities–Applying the Consolidation Exception (Proposed amendments to IFRS 10 and IAS 28)
Proposed amendments clarify the application of the requirement for investment entities to measure subsidiaries at fair value.
31 October 2012 IASB issues Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
Effective for annual periods starting on or after 1 January 2014. Amendments to IFRS 10 apply to entities whose business purpose is to invest funds solely for returns from capital appreciation, investment income or both.
28 June 2012 IASB publishes Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
Effective for annual periods starting on or after 1 January 2013. Amendments clarify transition guidance and provide additional transition relief.
12 May 2011 IASB issues IFRS 10
Effective for annual periods starting on or after 1 January 2013.