BC284 The Board proposed in the Investment Entities ED that the exception to consolidation should be applied prospectively. Some respondents disagreed with the proposal, arguing that retrospective application would result in more useful information. In addition, they noted that retrospective application should not be onerous because investment entities would be expected to have information about the fair value of their investments. Those respondents also argued that retrospective application would be consistent with the other transition requirements in IFRS 10.

BC285 The Board agreed with these arguments and decided to require retrospective application of the exception to consolidation, subject to specific transition reliefs, such as:

(a) a relief for when it is impracticable to identify the fair value of investments;

(b) a relief for when an investment entity disposes of investments prior to the date of initial application; and

(c) a relief from providing comparative information for more than one period preceding the date of initial application.