BC268 The Board included guidance in the Investment Entities ED on reassessing investment entity status. A few respondents asked the Board to clarify this guidance.
BC269 In the Investment Entities ED, the Board proposed that an entity would reassess its investment entity status whenever facts or circumstances changed. The Board decided to retain this requirement unchanged because it is consistent with the requirements for reassessment elsewhere in IFRS, including the general reassessment requirements in IFRS 10. The Board noted that they do not believe that the reassessment of facts and circumstances in other situations is considered unduly onerous for preparers or their auditors.
BC270 The Board decided that, when an entity loses investment entity status, it should account for that change as a 'deemed acquisition'. That is, the investment entity would use the fair value of the investment at the date of the change of status as the 'deemed' consideration transferred to obtain control o
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