IMA pushes shareholder interests on accounting fears

At stake is the shift from a so-called ‘parent concept’ to one known as ‘entity concept’. The IMA says the shift would result in an increase in opaqueness of accounts relied on by shareholders – whether they be institutional pension fund managers, or retail fund asset managers – to make investment decisions. Under the parent concept, assets and liabilities of an entity, even where it is not fully owned (e.g., a subsidiary) are consolidated in full, while minority interests (non-controlling interests) and transactions with non-controlling interests are identified separately in the account...