IFRS 10

IFRS 10

International Financial Reporting Standard that establishes principles for the presentation and preparation of consolidated financial statements.

Consolidated Financial Statements

The financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

Control

Refers to the ability of an investor to direct the relevant activities of an investee, affecting the returns obtained from the investee.

Investment Entity

An entity that obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services, and measures and evaluates the performance of substantially all of its investments on a fair value basis.

Non-controlling Interest

Equity in a subsidiary not attributable, directly or indirectly, to a parent.

Power

Existing rights that give the current ability to direct the relevant activities of an investee.

Variable Returns

Returns that are not fixed and have the potential to vary as a result of the performance of an investee.

SIC-12

Interpretation relating to consolidation—special purpose entities.

Loss of Control

Occurs when a parent entity derecognizes the assets and liabilities of a subsidiary from its consolidated financial statements.

Removal Rights

Rights to deprive the decision maker of its decision-making authority.

Fair Value Measurement

An essential element of the definition of an investment entity, requiring that substantially all investments are measured at fair value.

Annual Improvements to IFRS Standards 2014–2016 Cycle

Minor consequential amendments to IFRS standards, which can include updates to terminology, clarification of guidance, and conformity amendments.

Basis for Conclusions

Section of IFRS documents that provides the reasoning and justification for the Board's decisions.

Effective Date

The date on or after which an IFRS must be adopted in financial statements.