What Is the Impact of This Statement on Convergence with International Financial Reporting Standards?
This Statement, together with the IASB’s Amendments to IAS 27, Consolidated and Separate Financial Statements, concludes a joint effort by the Board and the IASB to improve the accounting for and reporting of noncontrolling interests in consolidated financial statements while promoting the international convergence of accounting standards. This Statement aligns the reporting of noncontrolling interests in subsidiaries with the requirements in IAS 27. Previously, entities applying international financial reporting standards (IFRSs) reported noncontrolling interests as equity, while entities applying U.S. generally accepted accounting principles (GAAP) reported those interests as liabilities or in the mezzanine section between liabilities and equity. This Statement and IFRSs also provide similar guidance for accounting for changes in a parent’s ownership interest and deconsolidation of a subsidiary and similar disclosure requirements. Thus, the issuance of this Statement eliminates a sou
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