Canada - English


  • Industry: Financial Services, Asset Management
  • Type: White paper
  • Date: 12/19/2012

First Impressions: Consolidation relief for investment funds 

On October 31, 2012, the IASB issued Investment Entities (Amendments to IFRS 10, IFRS 12, IAS 27 and IAS 28).


This First Impressions contains a detailed analysis of the consolidation exception for investment funds, prefaced with a summary of the key facts and impacts, and enhanced with KPMG's insight.



  • All qualifying entities are required to account for their subsidiaries on a fair value basis. This is a unique industry-specific solution introduced by the IASB.
  • To qualify, entities need to meet three key requirements, including having a business purpose to earn returns solely from capital appreciation and/or investment income.
  • Many investment funds are expected to qualify, including private equity funds, but real estate funds will face challenges.
  • The consolidation exception extends to the parent of the investment entity only if the parent itself meets the definition of an investment entity.


The amendments are effective from January 2014; however, early adoption is permitted.



Peter L. Hayes

Peter L. Hayes

Partner, Audit, National Director, Alternative Investments Practice


Share this


Follow us