In response, on 11 June 2014 IASB issued Exposure Draft Investments Entities: Applying the Consolidation Exception (ED) which seeks to clarify the following questions:
- How should an investment entity parent account for an investment entity subsidiary that provides investment – related services on its behalf?
- Can an intermediate parent (holding) in an investment entity group be exempt from preparing consolidated financial statements?
- How should a non-investment entity investor apply the equity method to investment in associates and joint ventures that are investment entities?
Comments are due to the IASB by 15 September 2014.