Clarifications will be made to Section 1591, Subsidiaries, and Section 3056, Interests in Joint Arrangements, in response to stakeholder feedback.
The amendments will clarify:
- that the transition provisions may not be applied when an enterprise changes its accounting policy choice to consolidate its subsidiaries at any time in the future;
- how the voting interest, if any, that an investor holds in a subsidiary controlled through a combination of voting rights and contractual arrangements should be accounted for when using the cost method; and
- that an enterprise is not required to assess whether contractual arrangements give rise to control when subsidiaries are not consolidated.