IFRS 10Chapter 10Lesson 1
Investment entities: measuring at fair value instead of consolidating
Step 1 of 4Learning objectives
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An investment entity does not consolidate its subsidiaries: it measures them at fair value through profit or loss, except for a subsidiary that provides services related to its investment activities; investment entity status is a judgment reassessed when facts change.
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Learning objectives
- Identify the three elements of the definition of an investment entity and justify whether an entity meets it.
- Explain the non-mandatory role of the typical characteristics.
- Explain the exception to consolidation and its exception for the service subsidiary.
- Identify the changes that require investment entity status to be reassessed and the IFRS 12 disclosures.