Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

21 October 2011

FASB seeks comments on proposal to clarify criteria for investment company accounting


Default: Change to:


The FASB published a proposed Accounting Standards Update intended to improve and converge financial reporting by setting forth consistent criteria for determining whether an entity is an investment company. Comments on the proposed Update are requested by January 5, 2012.


This proposed Update is a result of the efforts of the FASB and the IASB to develop consistent criteria for determining whether an entity is an investment company. Under longstanding US GAAP, investment companies carry all of their investments at fair value, even if they hold a controlling interest in another company. The primary changes being proposed by the FASB relate to which entities would be considered investment companies as well as certain disclosure and presentation requirements. These changes are being proposed for the first time under IFRS. Therefore, the proposed Update would improve the comparability between entities that meet the criteria to be investment companies under US GAAP and those that meet the criteria to be investment entities under the proposed amendments to IFRS.

In addition to the changes to the criteria for determining whether an entity is an investment company, the FASB also proposes that an investment company consolidate another investment company if it holds a controlling financial interest in the entity.

Press release



© FASB


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment