CERTYNEX IFRS ACADEMY

The Ancre fund obtains funds from investors to provide them with investment management services; it commits to them to invest solely for returns; and it measures the performance of substantially all its investments on a fair value basis (case data). What is concluded about its status as an investment entity?

Ancre meets the three elements of the definition of an investment entity.

Ancre is an investment entity because it holds several subsidiaries, whatever the way it measures its investments.

Ancre is not an investment entity, because measuring its investments at fair value is incompatible with the definition.

Ancre is an investment entity as soon as it receives income from its investments, whatever its commitments to investors.