"Many commentators have long believed that consolidating
the financial statements of an investment entity and its investees
does not provide the most useful information. Their concern is that
consolidation does not reflect the investment business model and
makes it harder for investors to understand what they are most
interested in – the value of the entity's
investments.
We share these concerns and therefore welcome these Amendments.
Although consolidation normally provides the most relevant and
useful information for a group, we believe there is a class of
investment entity for which fair value accounting is significantly
more useful. The IASB has worked hard to identify this class
appropriately – aiming for a robust definition that still
allows some flexibility and scope for reasonable judgement. The
timing of publication is significant given that IFRS 10
'Consolidated Financial Statements' is effective from 1
January 2013. The consolidation exception will have a
