IFRS 10 applies to all entities (including structured entities) except long-term employment benefit plans within the scope of IAS 19 ‘Employee Benefits’. A parent that is itself a subsidiary of another entity (an intermediate parent) need not present consolidated financial statements if it meets strict conditions, including that: • none of its owners object • its shares/debt instruments are not traded in a public market • a higher-level parent produces publicly-available IFRS consolidated financial statements. A parent that is an investment entity must not present consolidated financial statements if it is required to measure all of it subsidiaries at fair value through profit or loss. IFRS 10 applies only to consolidated financial statements. Requirements on preparing separate financial statements are retained in IAS 27.
An investor controls another entity (investee) when it has all the following (IFRS 10.6-8):
exposure, or rights, to variable returns from its involvement with the investee, and
the ability to use its power over the investee to affect the amount of the investor’s returns (principal vs. agent consideration).
Existence of control should be reassessed each time relevant facts and circumstances change (IFRS 10.8;B80-B85).