Transitional relief when consolidation conclusion at the date of initial application is the same under IAS 27 (2012)/SIC-12 and IFRS 10
An entity is preparing its consolidated financial statements for the year ended 31 December 2013 and is considering the implications of IFRS 10 which is mandatory for these financial statements..
Under IAS 27 (2012)/SIC-12, an investee was not consolidated as of 1 January 2012.
If IFRS 10 had been applied as of 1 January 2012, the investee would have been consolidated.
During 2012, the entity sold the interest in the investee (or re-negotiated the terms of its arrangements), such that as of 1 January 2013, when applying IFRS 10, the investee is not controlled by the investor.
The date of initial application of IFRS 10 is 1 January 2013. As at that date, the investee is not controlled by the entity under either IAS 27 (2012)/SIC-12 or IFRS 10. Therefore, the entity is relieved from retrospectively applying IFRS 10. It does not have to restate the comparatives for 2012 by consolidating the investee as at the beginning of the comparative period, 1 January 2012, and then deconsolidating the investee whenever control was lost as a result of the interest being sold (or the terms of its arrangements being renegotiated).