IASB amendment to IFRS 10, IFRS 12 and IAS 27 for Investment Entities
So what is going to be different, well these entities will not consolidate subsidiaries, but will measure 'subsidiaries' at fair value with fair value changes going through profit or loss. I agree with this 100% and think it improves the fair presentation of economic reality for their business model. Job well done IASB
Remember this only applies to 'investment entities' – entities whose business purpose is to invest funds solely for returns from capital appreciation, investment income or both and it must evaluate the performance of its investments on a fair value basis. Includes private equity and venture capital firms, pension and other investment funds.