IFRS 10 "Consolidated Financial Statements" - Key points in 40 Q&A

IFRS 10, which was published in May 2011, introduces a single definition of control and replaces the portion of IAS 27 which related to consolidated financial statements, as well as the SIC 12 interpretation on special purpose entities.

The new standard is effective for annual periods beginning on or after 1 January 2013. 

It may change the scope of consolidation (i.e. which entities should be consolidated) but the consolidation techniques remain the same (i.e. how to carry out consolidation).
In addition to the new definition of control, IFRS 10 includes clarifications on various issues which were not previously addressed by the IFRS framework, including:

  • the difference between protective rights and substantive rights;
  • de facto control;
  • the difference between an agent and a principal;
  • the concept of “silos”.


Mazars Insight - IFRS 10 "Consolidated Financial Statements"

Mazars Insight - IFRS 10 "Consolidated Financial Statements"