Commission Regulation (EU) No 1174/2013 adopts Investment Entities (Amendments to IFRS 10, 12, and to IAS 27)

The Commission Regulation (EU) No 1174/2013 of 20 November 2013, published in the Official Journal of the European Union L 312 on 21 November 2013, adopts Investment Entities (Amendments to International Financial Reporting Standards 10, 12, and to IAS 27).

IFRS 10 Consolidated Financial Statements has been amended in order to better reflect the business model of investment entities. It requires that investment entities measure their subsidiaries at fair value through profit or loss account rather than consolidate them.

IFRS 12 Disclosure of Interests in Other Entities has been amended in order to require specific disclosure about such subsidiaries of investment entities.

The amendments to IAS 27 Separate Financial Statements also removed the option for investment entities to measure investments in certain subsidiaries either at cost or at fair value in their separate financial statements.

Amendments to IFRS 10, IFRS 12 and IAS 27 imply by way of consequence amendments to IFRS 1, IFRS 3, IFRS 7, IAS 7, IAS 12, IAS 24, IAS 32, IAS 34 and IAS 39 in order to ensure consistency between international accounting standards.

Each company shall apply the amendments, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2014.