The Financial Accounting Standards Board and the International Accounting Standards Board have jointly published an exposure draft on the concept of reporting entities, including how they control other entities.

The proposals from the two boards are part of a joint project to develop a common conceptual framework for developing future accounting standards. The boards published a discussion paper in May 2008 on the reporting entity concept and received comments broadly supporting the boards’ preliminary views on the subject.

As a follow-up, the exposure draft describes what a reporting entity is, and when an entity controls another entity. It also considers when to present consolidated financial statements, parent-only financial statements and combined statements.

The two boards are inviting further public comments on the exposure draft. For more information, visit or

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