The objective of the proposed amendments is to provide clarification and to make clear what the Board's intention was when issuing IFRS 10. As a result, the Board proposes to:

(a) explain that the ‘date of initial application' in IFRS 10 means ‘the beginning of the annual reporting period in which IFRS 10 is applied for the first time'.

(b) clarify that an entity is not required to make adjustments to the previous accounting for its involvement with entities if the consolidation conclusion reached at the date of initial application is the same under IAS 27/SIC-12 and IFRS 10.

(c) clarify how an investor shall adjust comparative period(s) retrospectively if the consolidation conclusion reached at the date of initial application is different under IAS 27/SIC-12 and IFRS 10.

It is proposed that the effective date of the proposed amendments would be aligned with the effective date of IFRS 10. It is therefore proposed that an entity would also apply the proposed amendments for annual periods beginning on or after 1 January 2013.