Investment entity status

Learning objectives

• Assess the disclosures required about the judgement on investment entity status and about any change in that status.L3

Normative references

• IFRS 12 §9AAn investment entity discloses information about the significant judgements and assumptions it has made in determining that it is an investment entity; if it does not have one or more of the typical characteristics, it explains why it nevertheless concludes that it is an investment entity.
• IFRS 12 §9BWhen an entity becomes, or ceases to be, an investment entity, it discloses the change of status and the reasons for it; an entity that becomes an investment entity also discloses the effect of the change on the financial statements for the period: the total fair value, at the date of change, of the subsidiaries that cease to be consolidated, the total gain or loss calculated in accordance with B101 of IFRS 10, and the line item in profit or loss in which it is recognised if not presented separately.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• During the period, Atlas, which was an investment entity, ceased to meet the conditions for that status (case facts). What disclosure does IFRS 12 require in this respect?L3