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Accounting Update 9
Transitional Guidance for IFRS 10, IFRS 11 and IFRS 12
On the 28th June 2012 the International Accounting Standards Board (IASB) issued amendments to IFRS 10 Consolidated Financial Statements (IFRS 10), IFRS 11 Joint Arrangements (IFRS 11) and IFRS 12 Disclosure of Interests in Other Entities (IFRS 12). The amendments change the transition guidance to provide further relief from full retrospective application. The amendments aim to clarify certain aspects when an entity transitions from IAS 27 Consolidated and Separate Financial Statements (IAS 27) and SIC 12 Consolidation Special Purpose Entities (SIC 12) to the new standards IFRS 10, IFRS 11 and IFRS 12 which become effective 1 January 2013.
If control (in accordance with IFRS 10) was obtained before the effective date of IFRS 3 2008, an investor can apply either IFRS 3 2008 or IFRS 3 2004 If control (in accordance with IFRS 10) was obtained later than the effective date of IAS 27 2008, the investor is required to apply IFRS 10 for all periods that the investee is retrospectively consolidating in accordance with the transitional guidance in IFRS 10 If control was obtained before the effective date of IAS 27 2008, an investor can either apply IFRS 10 for all periods, or apply IAS 27 2003 to periods prior to the effective date of IAS 27 2008, and IFRS 10 for subsequent periods.
ACCOUNTING PUBLICATION
These periodic Accounting Updates are prepared by PKF International Ltd (PKFI) as a resource to help PKF member firms understand key accounting developments and how they may affect their clients.
If you would like to share your accounting experiences or resources, ask any questions or add yourself or your colleagues to the Accounting Update email list, please contact: Abdul Islam - Senior Technical Manager Email: abdul.islam@pkf.com Tel: +44 (0) 207 065 0418
IMPORTANT DISCLAIMER: This publication has been distributed on the express terms and understanding that the authors are not responsible for the results of any actions which are undertaken on the basis of the information which is contained within this publication, nor for any error in, or omission from, this publication. The publishers and the authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication. Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances. PKF International is a network of legally independent member firms administered by PKF International Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or liability for the actions or inactions on the part of any individual member firm or firms.
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12-1990 2012