Question
The following comment was made by the Swedish Financial Reporting Board to the IASB in response to the issue of ED 10 Consolidated Financial Statements,
The following comment was made by the Swedish Financial Reporting Board to the IASB in response to the issue of ED 10 Consolidated Financial Statements, and received by the IASB on 6 April 2009: We agree that consolidated financial statements would be improved, if they include entities under de facto control. However, the problem is to establish which entities are really under de facto control. There are situations where it is very clear that the dominant shareholder de facto controls another entity, but there are also lots of situations, where it is not clear that the dominant shareholder de facto controls the other entity. We suggest that the requirement for consolidation based on de facto control is restricted to situations, where it is beyond reasonable doubt that control really exists. Required Discuss whether AASB 10/IFRS 10 meets the problem raised by the Swedish Financial Reporting Board
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